TIBCO Brings Loyalty Management Company Loyalty Labs Into Its Fold
TIBCO Software, Inc., a provider of enterprise software that facilitate service-oriented architecture (SOA) and business process management (BPM), today announced that it has acquired loyalty management solutions provider Loyalty Lab, Inc., for $23 million in cash plus debt.
Headquartered in San Francisco, Loyalty Lab is a privately held company with over 35 clients including large retailers, hospitality chains and consumer product manufacturers. The acquisition was reportedly effected to accelerate TIBCO’s international presence in the customer loyalty market.
Loyalty Lab’s offers its solutions via software-as-a-service. The company’s products allow marketers to manage their loyalty marketing programs (think frequent flier mileage programs or retail VIP memberships) from the desktop. The company’s platform and open API enable companies to design loyalty programs more effortlessly and lets marketers focus their attention on motivating improvements in retention, frequency and advocacy among their customers.
“There are plenty of vendors that offer 20th Century approaches to managing so-called customer relationships,” said Ram Menon, executive vice president for Worldwide Marketing for TIBCO. “What businesses require today is a 21st Century solution for building customer loyalty—one that supports not only customer transactions but also real-time customer interactions or events, and a platform that scales to billions of such events across an increasingly social and mobile marketplace. TIBCO has seen significant demand from leading banks, telcos and retailers looking to leverage our event-driven platform to manage and improve interactions with their customers. We are excited to further our commitment to this space by combining Loyalty Lab’s expertise with our own proven leadership in real-time infrastructure and the cloud.”
Loyalty Lab’s existing management team, including founder and chairman Mark H. Goldstein and CEO Matt Howland, has joined TIBCO to continue operating the business. The acquisition is expected to be mutually beneficial to both companies.
“We are extremely excited to be the newest part of TIBCO,” said Matt Howland, CEO of Loyalty Lab. “TIBCO’s technology leadership and global presence will allow us to grow and innovate in ways we couldn’t do alone. Our clients will benefit greatly from this step, as we become an integral part of TIBCO’s real-time infrastructure platform and incorporate TIBCO’s best-in-class analytics capabilities.”