Cendant Corp. has reached an agreement to sell its Marketing Services Division (MSD) to Affinity Acquisition Holdings LLC for $1.7 billion in cash and $125 million in preferred stock from Affinity Acquisition, plus warrants to purchase more stock.
MSD is a direct marketer of membership clubs and insurance products. The division generated around $1.5 billion during 2004. Cendant will use the gains from the sale to further its previously announced stock repurchase activities.
MSD, which is made up of Cendant’s Trilegiant, Progeny and Cms subsidiaries, is headquartered in Norwalk, CT. The three units employ around 3,600 workers in the United States and Europe.
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