Dallas company acquires West Chicago's Aspen Marketing Services

Alliance Data Systems Corp announced Monday it has agreed to acquire Aspen Marketing Services based in West Chicago.

Aspen, the largest privately held marketing services agency in the U.S., specializes in digital and direct marketing services and advanced analytics to perform data-driven customer acquisition and retention campaigns.

For 25 years, Aspen has been a recognized leader in providing marketing agency services and in 2010 was ranked Number 8 by Advertising Age in the U.S. CRM/direct marketing agency category. The company has expertise in the automotive and telecommunications industries, coupled with diverse Fortune 100 clients in consumer product goods, retail and financial services.

The acquisition significantly expands Dallas-based Alliance's Epsilon agency business through new agency capabilities and technology, and fits within its strategy of seeking strategic acquisitions that enhance its core capabilities and strengthen its competitive advantage.

The transaction is expected to close in the second quarter, pending customary regulatory approvals and closing conditions.

"Aspen is a well-admired, innovative agency that is a perfect fit for Epsilon," said Epsilon President Bryan Kennedy."We are committed to transforming our agency business to become a market leader, and this acquisition is a very strategic and important move in that direction. Combined, our two entities will drive impactful programs for our clients through the creation of relevant brand experiences for consumers – from concept and strategy to dynamic communications and interactions via online and offline channels."

Patrick O'Rahilly, president and chief executive officer of Aspen, said it was a "prime opportunity" for the company.

"I've been in the business for 25 years, and it was clear that this was a prime opportunity to take our well-established agency business to the next level," O'Rahilly said. "Combining our capabilities and expertise with Epsilon's critical products (data, database, analytics, distribution) will allow for an even more compelling offering.

"We've spent a lot of time with the team at Alliance Data and Epsilon, and we all feel that the fit is perfect. I'm looking forward to driving forward to the next level with Epsilon's $1 billion division behind us, as well as a corporate parent which is fully supportive of our approach," he added.

Aspen is projected to generate $250 million in revenues in 2011. Alliance Data will pay $345 million plus a working capital adjustment for the company.