Today, March 10, BMO announced the signing of a purchase agreement to acquire LoyaltyOne's AIR MILES Reward Program (AIR MILES) business. For BMO customers and all AIR MILES collecting Canadians, as well as merchants and partners across the country, BMO's acquisition of AIR MILES would be a made-in-Canada opportunity to enable a reinvigoration for one of Canada's largest loyalty programs. BMO's acquisition of the AIR MILES business is subject to court approval (as described below), the receipt of required regulatory approvals and other customary conditions.

As a founding partner of the AIR MILES program since 1992, BMO is well positioned to strengthen and grow Canada's most recognized loyalty program. With nearly 10 million active collector accounts, representing approximately two-thirds of all Canadian households, AIR MILES is the only loyalty program of its kind to give collectors the flexibility and choice to earn Reward Miles almost anywhere and redeem them at a broad range of merchants on aspirational rewards such as merchandise, travel, events, and attractions, or instantly on everyday essentials, in-store or online, through AIR MILES Cash at participating partner locations.¹

"As a leading partner, we have always believed in the value of the AIR MILES program for Canadians and are confident about the continued opportunities to build even greater customer loyalty," said Ernie Johannson, Group Head, North American Personal & Business Banking, BMO. "If our acquisition of the AIR MILES business is successful, we will bring the ownership of AIR MILES home to Canada and strengthen its offering for Canadian consumers and businesses together with leading Canadian, global and online program partners and merchants."

"As AIR MILES' longstanding partner, BMO's acquisition would be a significant step forward in solidifying the future of the AIR MILES program," said Shawn Stewart, President, AIR MILES Reward Program. "BMO's agreement to purchase the Air Miles business has no impact on AIR MILES collectors' Reward Miles balances or on collectors' ability to collect and redeem AIR MILES Reward Miles. AIR MILES continues to serve its customers — ensuring that they are rewarded richly and that they can use their Reward Miles in a way that meets their needs."

BMO's acquisition of the AIR MILES Reward Program business has been proposed as part of LoyaltyOne's proceeding under the Companies' Creditors Arrangement Act (Canada) (the CCAA) commenced in the Ontario Superior Court of Justice (Commercial List) (the Court).

LoyaltyOne's CCAA proceeding will also involve a sale and investment solicitation process to solicit any other interest in the AIR MILES business. BMO's acquisition or a proposed acquisition by any other bidder will be subject to Court approval.