St. Paul marketing company Augeo said Thursday that it had acquired Empyr, a San Diego-based card-linking platform for national brands and digital publishers.
Prior to the acquisition, Augeo and Empyr had worked together for several years. Together, the two companies will create a new entity called Figg that will combine the card-linking business of Augeo with the publishing experience of Empyr.
Card-linked programs allow users to earn discounts, rewards or cash back when they use a qualifying card at participating businesses.
Augeo said in a statement that it expects Figg to have one of the largest user bases in the card-linking industry, with more than 60 million users and $300 billion in transaction volume. Figg will also bring new card-linked opportunities to advertisers, publishers and consumers.
"While the timing might seem counter-intuitive, we believe there is an urgent need to bring advanced technology and more encompassing advertiser offer content to consumers seeking greater value," David Kristal, Augeo CEO and Figg executive chairman, said in a release. "As things begin to improve, Figg will be uniquely positioned to connect consumers with advertisers to help accelerate commerce in the U.S. market."
The transaction received support from Valor Siren Ventures, a firm that backs companies working in food, food technology and retail technology sectors. Valor's portfolio includes companies like Uber and Grubhub.
"Figg creates an extensive network to build an innovative retail-technology platform that drives value for all stakeholders," Valor Partner Jon Shulkin said in a statement.
This is Augeo's fourth fintech acquisition. It also acquired MotivAction, a Minneapolis-based enterprise engagement firm, last fall.
"We have a unique strategic focus around cash preservation coupled with ingenuity, adaptability and where possible, growth," Kristal said. "The combination of Augeo, Empyr and Valor provides strength during a very difficult time. For that, we are incredibly thankful."
