Alliance Data To Buy Conversant For About $2.3 Bln

(RTTNews) - Alliance Data Systems Corp. (ADS) said Thursday that it has agreed to buy digital marketing company Conversant, Inc. (CNVR) in a cash and stock deal valued at about $2.3 billion, or $35 per Conversant share.

The purchase price, structured to be paid with about 48% cash and 52% ADS shares, represents 10x Conversant's expected forward adjusted EBITDA of $230 million for 2015.

At the announcement, the offer comprises 52% stock and 48% cash, which is equal to $18.20 per share of Alliance Data stock and $16.80 per share of cash to Conversant shareholders. The deal, which has been unanimously approved by the boards of directors of the two companies, is expected to close by year end..

Alliance Data expects substantial accretion from the deal: about $0.50 and $0.75 to core EPS in year 1 and year 2, respectively, excluding deal costs. Post-closing, Conversant will operate as part of Epsilon.