BabyMint buys NestEggz loyalty reward programme
In a move to strengthen its market position, micro-investing technology company BabyMint is acquiring the assets of the NestEggz division of Nuvisio Corporation in an all-cash deal, valued at an estimated US$4.5 million. The NestEggz loyalty rewards programme enables consumer product manufacturers to distribute fraud-proof coupons online.
NestEggz programme NestEggz will become an operating division of BabyMint, and will be relocated from New York and Tel-Aviv, Israel, to Atlanta, GA. The acquisition has been approved by the shareholders of both companies and it is expected that full integration of NestEggz into BabyMint will be completed by the end of March 2003.
Consumers participating in NestEggz are able to print out online coupons (sponsored by manufacturers) for in-store redemption. The value of the coupons is then tracked from the point of purchase into an 'investment vehicle' through NestEggz patented tracking technology.
Among the first to join the NestEggz programme when it launched in April 2001 were Kellogg USA, Kimberly-Clark, Mott's, Clairol, Fleischmann's, Birds Eye, GlaxoSmithKline, Georgia Pacific, and Borden Foods. At the programme's peak, it featured over 35 major brands, 90 consumer offers, and access to more than 25 million consumers.
Mass market "NestEggz is an excellent complement to BabyMint's existing business," said Dani Birnbaum, CEO for Nuvisio Corporation. "NestEggz will work much harder for brands when combined with BabyMint."
Under BabyMint's control, the programme is expected to achieve mass market distribution, with better targeting opportunities, and higher consumer relevance when combined with the firm's existing savings programme.
"The end result for participating brands will surely be more unit sales and higher levels of customer loyalty than before," added Birnbaum.
BabyMint savings Currently, parents and families register with BabyMint (at no cost) and receive rebates on purchases made through BabyMint's network of online and bricks-and-mortar retailers, which include Barnes & Noble, Eddie Bauer, Best Buy, Dell, Starbucks, Macy's and Gap, among others. Retailer and product rebates are automatically tracked and credited to the client's 529 plan (or other college savings account).
"While our overall strategy has been focused on organic growth, this acquisition provides us with additional technology and expertise in the retail and CPG areas," explained BabyMint's founder, Peter Davis.