Back to top

Image: Bigstock

Alliance Data Unit, CNO Financial Ink Long-Term Agreement

Read MoreHide Full Article

Epsilon, an Alliance Data Systems Corporation company, recently inked a multi-year deal with CNO Financial Group, Inc. (CNO) to prepare a marketing database solution for the latter.

Carmel, IN-based CNO Financial is a top-tier holding company for a group of insurance companies operating across the U.S., namely Bankers Life, Washington National and Colonial Penn. Per the agreement, Epsilon will prepare a marketing database solution to facilitate improved personalized communications via direct mail, television, call center, display, and email. Both direct-to-consumer efforts and regional agent distribution channels will benefit from this transaction. Moreover, the Alliance Data unit will help in cross-selling products and support lead management processes.

Epsilon will also provide data services to boost CNO Financial’s current and potential customers by helping the company with improved modeling and campaign selection, to name a few. According to Chris Campbell, senior vice president, marketing and communications of CNO Financial, "It will improve our omni-channel campaign and lead management, our business intelligence and analytics, and better enable enhanced sales, customer relationships, and operational efficiencies.”

Alliance Data expects the deployment of its technology and expertise to enable personalized communications across channels, thereby improving outcome.

Epsilon continues to deliver solid numbers with revenues increasing 5% in the last reported quarter. We expect its business to gain momentum on the back of strategic deals like the one mentioned above. Last month, Epsilon inked a multi-year deal with Amica Mutual Insurance Company to manage email marketing strategy and execution of the latter. We expect such initiatives to help Epsilon to achieve 7% growth in revenues and EBITDA.

Zacks Rank and Stocks to Consider

Alliance Data carries a Zacks Rank #4 (Sell). Some better-ranked financial transaction service providers are Equifax Inc. (EFX - Free Report) , Global Payments Inc. (GPN - Free Report) , and MasterCard Incorporated (MA - Free Report) . Each of these carries Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

MasterCard is a leading global payment solutions company providing an array of services in support of the credit, debit, mobile, web-based and contactless payments, and other related electronic payment programs to financial institutions and other entities. The expected long term earnings growth is currently pegged at 15.50%

Global Payments is a provider of payment solutions for credit cards, debit cards, electronic payments, and check-related services. The expected long term earnings growth is currently pegged at 14.50%.

Equifax is a provider of information solutions and human resources business process outsourcing services for businesses, governments, and consumers. The expected long term earnings growth is currently pegged at 12.20%

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>


Unique Zacks Analysis of Your Chosen Ticker


Pick one free report - opportunity may be withdrawn at any time


Mastercard Incorporated (MA) - $25 value - yours FREE >>

Equifax, Inc. (EFX) - $25 value - yours FREE >>

Global Payments Inc. (GPN) - $25 value - yours FREE >>

Published in