Abacus, which provides data, data management, and analytical services, will be integrated into Alliance's Epsilon unit. Abacus' 525 employees and its services will carry the Abacus name under the Epsilon brand.
From its offices in Lafayette, Colo.; Schaumburg, Ill.; and the United Kingdom, Abacus serves a wide range of retail and catalog customers, including Patagonia, Sur La Table and Brookstone. Earlier this year, Alliance acquired DoubleClick's Email Solutions operation.
"Abacus is a perfect strategic fit and offers attractive financial opportunities for Alliance Data as we continue to build upon the recent significant growth we've achieved in our marketing services segment," said Mike Parks, Alliance's chairman and CEO, in a statement. "[The acquisition] also provides prime cross-selling opportunities across Alliance Data's businesses."
The company said that the acquisition will enable it to market Abacus products and services to its more than 80 private-label credit card retail clients. Alliance said it expects Abacus to add at least 5 cents a share to its 2007 earnings.