MONTREAL, Sept. 20, 2012 /CNW Telbec/ - Aimia (TSX: AIM) and Sainsbury's today announced they have formed Insights 2 Communication LLP (I2C), a joint venture, which will offer suppliers comprehensive multi-channel marketing solutions in and around Sainsbury's stores and online.
I2C will provide Sainsbury's suppliers with a 'one-stop shop' solution to advertise across all of the retailer's communication channels - both targeted and non-targeted. Through a series of licensing and supply agreements with Aimia and Sainsbury's, the joint venture will combine people, intellectual property and tools, and Sainsbury's fast-growing in-house non-targeted communications business. The licensing and supply agreements will be for an initial term of 6 years.
Similarly, the insight and targeted communications services that Aimia currently provides to Sainsbury's suppliers, including access to Self Serve and targeted communications, will also now be provided by the joint venture.
Aimia retains sole ownership of its existing proprietary data analytical tools, including Self Serve. The international operations of Aimia's Intelligent Shopper Solutions (ISS) will not be affected by the creation of the joint venture.
The joint venture board will have equal representation from Sainsbury's and Aimia, whilst the day to day senior management team has been created by bringing together the best talent from both Aimia and Sainsbury's.
David Buckingham from Aimia has been appointed Chief Executive Officer of I2C and will report to a board comprising: Mike Coupe, Sainsbury's Group Commercial Director; Luke Jensen, Sainsbury's Group Development Director; David Johnston, President and CEO, EMEA, Aimia; and Peter Gleason, Managing Director, Intelligent Shopper Solutions, Aimia. Luke Jensen has been appointed chairman of I2C.
Commenting on the joint venture, David Buckingham said: "From the home to the checkout and beyond, I2C will offer suppliers a tailored advertising solution in and around stores and online. We will help Sainsbury's suppliers to plan, manage and deliver fully integrated campaigns more effectively to the millions of customers who visit Sainsbury's stores or shop online each week."
Luke Jensen, Sainsbury's Group Development Director, said: "The joint venture is a win-win for both customers and suppliers. This means more timely, relevant and accessible offers for customers based on their likes and dislikes, while brands benefit from an end-to-end insight based marketing solution and greater return on investment."
David Johnston, President and CEO EMEA, Aimia said: "The launch of I2C is testament to the growing interest in shopper marketing, targeting customers in and around stores. Coupled with our data-driven approach, we believe I2C will deliver better experiences for shoppers and greater ROI for suppliers who will benefit from the integrated solution I2C offers."
Aside from a small initial working capital requirement, the joint venture will be self sufficient from a cash perspective and is expected to fully distribute its retained earnings to its shareholders on a regular basis.
The joint venture will give Aimia access to additional revenues, however, due to the timing of the transaction and the terms of the arrangement, there will be no material impact to Aimia's consolidated financial statements in 2012. For 2013 reporting, Aimia will evaluate the accounting of this arrangement in compliance with the new standard, IFRS 11, Joint Arrangements. Aimia will account for this entity either as a joint operation which would mean accounting for its proportionate share of the revenues, expenses, assets and obligations of the entity or it will account for the entity as a joint venture under the equity accounting method.
Aimia Inc. ("Aimia") is a global leader in loyalty management. Aimia's unique capabilities include proven expertise in delivering proprietary loyalty services, launching and managing coalition loyalty programs, creating value through loyalty analytics and driving innovation in the emerging digital and mobile spaces. Aimia owns and operates Aeroplan, Canada's premier coalition loyalty program and Nectar, the United Kingdom's largest coalition loyalty program. In addition, Aimia has majority equity positions in Air Miles Middle East and Nectar Italia as well as a minority position in Club Premier, Mexico's leading coalition loyalty program and Cardlytics, a US-based private company operating in merchant-funded transaction-driven marketing for electronic banking.
Aimia is a Canadian public company listed on the Toronto Stock Exchange (TSX: AIM) and has over 3,400 employees in more than 20 countries around the world. For more information about Aimia, please visit www.aimia.com.
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This news release contains forward-looking statements. These forward-looking statements are identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions. Such statements may involve but are not limited to comments with respect to strategies, expectations, planned operations, future actions, anticipated financial performance and business prospects. Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties. Any forecasts or forward-looking predictions or statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business and its corporate structure. Results indicated in forward-looking statements may differ materially from actual results for a number of reasons, including without limitation, the factors identified in this news release and throughout Aimia's public disclosure record on file with the Canadian securities regulatory authorities. Material factors and assumptions that were applied in drawing a conclusion or making a projection or forecast are also set out throughout this document. We believe that the expectations represented by our forward-looking statements are reasonable, yet there can be no assurance that such expectations will prove to be correct. The purpose of the forward-looking statements is to provide the reader with a description of management's expectations regarding the matters described in this news release and may not be appropriate for other purposes. The forward-looking statements contained herein represent Aimia's expectations as of September 20, 2012, and are subject to change after such date. However, Aimia disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.