The El Segundo-based Prodege acquired its fourth company in the last 13 months as it seeks to dominate in the digital rewards program space and strengthen its consumer analytics business.
The owner of consumer rewards site Swagbucks and MyPoints picked up Upromise Inc, an education-saving rewards business owned by Sallie Mae, giving it a foray into credit cards and helping the company build its consumer data business. Terms of the deal weren't released.
<p>The Massachusetts-based Upromise provides a cash-back rewards program linked to 529 plans, an investment tool that provides tax breaks for college savings. The product has 500,000 members, many with a linked credit card that will be handled in partnership with Barclays. And those individuals are estimated to have $3.2 billion in purchasing power. </p><p>"We grow our members, we grow the number of partners we work with, we grow our revenues and profits,' said chief executive Chuck Davis, the former head of Fandago and Shopzilla.</p><p>The addition also adds an important demographic to their 120 million people that have signed up for their products, college-bound families. About half of Prodege's business is based in its analytics of consumer behavior, the other half is its consumer facing rewards programs that direct shoppers to certain brands. Swagbucks, for instance, works directly or indirectly with about 3,500 merchants, including names like Amazon and Walmart.</p><p>Landing access to upwardly mobile families makes the product more appealing to brands and could help their analytics side. </p><p>Earlier this year Prodege bought the digital coupon-cutter company CouponCause, which helps it capture valuable shopper information. The company said it has rewarded $1.7 billion in cash rewards and gift cards since its inception. <br/></p>
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The owner of consumer rewards site Swagbucks bought the digital coupon-cutter company CouponCause Monday, expanding its e-commerce brands as it bulks up its consumer data and analysis business.
Parent company Prodege did not disclose terms of the deal on Monday but said it will absorb the Santa Monica-based company at its El Segundo headquarters where it keeps a live tracker of gift cards redeemed from around the world.
<p>The move comes at a time of increased interest in the digital coupon space after PayPal paid $4 billion for Honey, another company that makes money by helping consumers earn rewards and find digital coupons. Companies like Honey, RetailMeNot and Prodege use the deals to capture valuable consumer information. Prodege also owns MyPoints, InboxDollars and MyGiftCardsPlus.</p><p>"The number of consumers who like value is limitless and we are satiating that appetite," said Prodege chief executive Chuck Davis, as he ticked off data points on the latest gift cards awarded— $25 at Applebees in Europe, $50 from Starbucks in Florida, another $25 from a Red Lobster in Florida — as they appeared on a screen in front of him. </p><p>The acquisition, which went into effect on Feb. 3, will help Prodege build a larger presence online — or as Davis puts it, "widen the vortex." Davis said the brands will eventually integrate. That will help feed the company's data and survey business, which already provides clients with insights on everything from customers' political preferences to their shopping habits. </p><p>Swagbucks works directly or indirectly with about 3,500 merchants, including names like Amazon and Walmart, he said. </p><p>And there's room for even more growth. In 2018, the company secured $130 million in debt financing that Davis, the former chief executive at Fandago and Shopzilla, said is intended for mergers and acquisitions. Last year, the company acquired CotterWeb Enterprises, Inc., which operates InboxDollars.com and SendEarnings.com.</p><p>With the most recent purchase behind them, Davis said Prodege is in "growth mode."</p>
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