“Today’s announcement reflects the outcome of a lengthy study into Alliance Data’s portfolio of businesses with the objective of unlocking increased value for Alliance Data stockholders,” he added. “Optimizing Epsilon’s unique collection of assets requires growth and capital allocation strategies that differ from those of our card services business.”He said if the unit sells, Alliance Data would “use our improved capital structure to accelerate growth and realign for Alliance Data 2.0.” That includes using the money to pay down debt “as well as returning capital to stockholders through share repurchases and/or dividends.”The company previously announced that it would undertake a “comprehensive internal and board-led strategic review.” Epsilon operates loyalty, email and customer relationship management programs for companies. For example, earlier this month it signed a multiyear agreement with Dunkin’ Brands, parent company of Dunkin’ and Baskin-Robbins, for technology and services supporting the loyalty program DD Perks. Next year, Epsilon will also provide Dunkin’ with email marketing technology.It’s the midsized operation among Alliance Data’s three lines of business. It’s smaller than the credit card services operation and larger than the loyalty program segment.For fiscal year 2017, Epsilon’s revenue was $2.27 billion, up from $2.16 billion for fiscal year 2016.
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