Clarus Commerce Acquired by Marlin Equity Partners; Receives Minority Investment from Norwest Venture Partners
Investments from two prominent private equity firms allow Clarus Commerce to advance leadership position and innovation in the premium loyalty market
Clarus Commerce, the only company specializing in building, managing and optimizing premium loyalty programs, today announces its acquisition by Marlin Equity Partners, a global investment firm with over $6.7 billion of capital under management. The investment was made alongside Norwest Venture Partners, who was a prior investor in Clarus and will hold a minority stake in the company.
The investment validates retailers’ increasing need for programs that drive higher customer engagement and brand advocacy, and consumers’ desire for incentives catered to their unique needs and wants. An increasing number of these retailers, including Restoration Hardware, Wayfair, Lululemon Athletica and CVS, have identified premium loyalty programs as a key ingredient in achieving these goals.
“The investments from Marlin and Norwest are a testament to our leadership and innovation in the rapidly growing premium loyalty market,” said Tom Caporaso, CEO of Clarus. “Retailers have recognized that building customer loyalty is no longer just about points and discounts, but also strengthening relationships with consumers long-term by offering programs that build a deeper, more meaningful connection to the brand. We are excited to work with both firms to enhance our capabilities for retailers and drive our next stage of growth.”
Premium loyalty programs are gaining momentum among retailers because they provide customers with instant, 24/7 access to top-tier benefits. Instead of earning discounts or coupons after they’ve completed a transaction, a retailer’s most dedicated customers can pay an annual or monthly membership fee to get what they want, when they want it.
“Clarus is a pioneer in the growing premium loyalty market with an outstanding history of success,” said Alex Beregovsky, a managing director at Marlin. “The company’s strong customer base and partner network are a testament to the value proposition that Clarus brings to both retailers and consumers. We are thrilled to partner with an exceptional management team to seek new partnerships, invest in the product roadmap and further accelerate the company’s growth.”
Financial details of the transaction have not been disclosed. Raymond James acted as financial advisor and Latham & Watkins LLP served as legal advisor to Clarus. William Blair & Company, LLC acted as financial advisor and Goodwin Procter LLP served as legal advisor to Marlin and Norwest.