DALLAS, Oct. 19 /CNW/ -- LoyaltyOne has acquired a 29-percent interest in CBSM - Companhia Brasileira De Servicos De Marketing ("Dotz"), operator of Brazil's dotz loyalty program (www.dotz.com.br). Founded in 2000, dotz is a Brazilian-based loyalty program with more than 200,000 active participants, 50 online sponsors and a rewards catalog featuring more than 6,000 products and services. Terms of the agreement were not disclosed. However, in return for its equity stake, LoyaltyOne will provide program design and strategic counsel, business development support, operational planning and best practices guidance, and financial consideration to Dotz. LoyaltyOne is an Alliance Data Systems Corporation (NYSE: ADS) company.

Effective immediately and continuing throughout 2010, LoyaltyOne and Dotz will evolve the Brazilian online-only loyalty program to include and feature a traditional retail-based coalition loyalty structure similar to LoyaltyOne's AIR MILES Reward Program in Canada, which currently has more than 70 percent of Canadian households participating and more than 100 leading brand-name sponsors.

LoyaltyOne's investment in Dotz marks the beginning of its global expansion strategy that will take the company beyond North America. "We've identified priority areas for global growth, and Brazil without question presents a huge opportunity for us," said Bryan Pearson, president of LoyaltyOne. "Our goal is to build-out coalitions similar to our Canadian model in markets where none exist today. We will leverage the unparalleled success we've had in Canada to build these coalitions in attractive and long-term, viable regions. Furthermore, securing ownership in a growing program within a country that has almost six times the population of Canada offers both a tremendous market and financial opportunity."

By adding more confirmed sponsor brands including leading high-frequency businesses such as a national bank, regional grocer and national gas station chain, the expanded coalition program is being introduced in Belo Horizonte, Brazil's third-largest metropolitan area with a population of more than four million people. This would constitute phase one of a potential multi-phased, countrywide roll-out.

"When we wanted to expand and enhance the dotz program, we chose LoyaltyOne because of their expertise in managing one of the largest and most successful coalition loyalty programs in the world," noted Dotz President & CEO Roberto Chade. Dotz is a privately held company. LoyaltyOne is its first external shareholder.

Key anchor sponsors signed for dotz's traditional retail-based coalition program include Banco do Brasil, Brazil's largest national bank with more than 78 million cards (2008) including debit, credit and co-branded cards; Ale, one of Brazil's largest national gasoline station chains with more than 2,000 locations; and SuperNosso, a strong regional grocer in Belo Horizonte, where the program is being launched.