Visible push into US market

By PETER GRIFFIN IT writer

A multimillion-dollar deal by Auckland-based card technology company Visible Results could soon see American shoppers filing customer loyalty cards designed by New Zealanders among their credit cards and driver's licences.

The $14.4 million buy-up of Kansas-based Graphicard will make Visible Results the world's largest provider of rewritable loyalty card programmes and earn the company $US30 million ($67.8 million) a year for business done in the United States alone.

New Zealanders will be most familiar with the work of Visible Results in the form of Mobil Max cards, the award-winning customer loyalty programme run by the petrol retailer.

The card technology utilised by Mobil, as well as Dymocks and KFC in Australia and Caltex in Singapore, uses thermo-chromic printing to deliver instant messages to customers and record purchases.

While the acquisition means 80 per cent of Visible Results' revenue will now come from overseas, the management has no plans to move closer to some bigger customers.

Michael Whittaker, group manager for Atlantis Group, Visible Results' parent, said the company had a huge "brains trust" in its New Zealand operations and would be looking to fill between 50 and 60 new positions as a result of the acquisition.

"Basing ourselves in New Zealand gives us a considerably lower cost base and allows the people we employ to work at the leading edge of world-class technology developed without having to leave the country.

"The biggest issue we have is being able to find enough capable technical people here to support the growth."

Atlantis originally bought the licence to use Graphicard's technology in New Zealand, Australia and Southeast Asia, but the latest deal sees Visible Results inherit the company's patents, giving business rights on a global basis.

While the important US market will be a particular target - several large retailers are already lined up to start using the card technology - Visible Results plans to test the water in Europe as well.

The acquisition is expected to strengthen the company in the lucrative retail customer relations management market.

Mr Whittaker said his company's technology had the advantage over other swipe-card loyalty schemes as changing messages on Visible Results cards gave "instant gratification at the checkout."