Stock News Alert: Alliance Data Systems Corporation (NYSE:ADS)

Alliance Data Systems Corporation (NYSE:ADS) stock identified change of 26.90% away from 52-week low price and recently located move of -27.71% off 52-week high price. It has market worth of $9735.84M and dividend yield of 1.39%. ADS stock has been recorded 4.90% away from 50 day moving average and -9.97% away from 200 day moving average. Moving closer, we can see that shares have been trading 4.32% off 20-day moving average.

Alliance Data Systems Corporation (NYSE:ADS), a leading global provider of data-driven marketing and loyalty solutions, today announced it has entered into a definitive agreement to sell its Epsilon business to Publicis Groupe [Euronext Paris : FR0000130577, CAC 40], one of the world’s largest leading global marketing, creative and business transformation companies, for $4.4 billion in cash, representing an approximate 10X trailing 12-month EBITDA (adjusted) multiple. The transaction was unanimously approved by Alliance Data’s Board of Directors and is expected to close in early Q3 2019, subject to satisfaction of customary closing conditions and receipt of regulatory approvals.

Net cash proceeds, after tax obligations and fees associated with the transaction, are expected to be $3.5 billion. Alliance Data expects to use the full amount to repurchase shares and pay down corporate debt. On a full-year run-rate basis, the transaction will be accretive to core EPS guidance of $22 and highly accretive on a GAAP basis.

“I’m pleased to say today’s announcement represents a trifecta win for Alliance Data, Epsilon and Publicis Groupe,” said Ed Heffernan, president and CEO of Alliance Data. “The announcement of this transaction represents the culmination of an extensive assessment of strategic options for our Epsilon business. With this transaction, Alliance Data is executing on its previously announced goals of transitioning into a leaner, more focused organization and unlocking additional shareholder value while also finding what we believe to be the right home for Epsilon’s technology, data assets and associates. We believe that Publicis Groupe will be the ideal cultural and strategic fit for Epsilon and its Conversant® business, and will help drive Publicis Groupe’s own transformation in today’s data-driven digital world.

“Furthermore, the unique relationships that have been cultivated between Epsilon and our other Alliance Data businesses will remain intact, and we look forward to working with Publicis Groupe to develop a broader relationship, and promoting mutual and sustainable growth going forward.”

 The Services sector company, Alliance Data Systems Corporation noticed change of 2.95% to $180.93 along volume of 684384 shares in recent session compared to an average volume of 630.57K. The stock observed return of 2.16% in 5 days trading activity. The stock was at 6.62% over one month performance. ADS’s shares are at 8.04% for the quarter and driving a -12.99% return over the course of the past year and is now at 20.56% since this point in 2018.   The average volatility for the week at 2.02% and for month was at 2.43%. There are 53.81M shares outstanding and 51.48M shares are floated in market. Right now the stock beta is 1.78. 

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