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Fandango Agrees to Acquire Quantum Loyalty Solutions

The leader in online movie tickets is paying an undisclosed sum for the creator of Hollywood Movie Money.

In a deal that gives Fandango a significant leg up in the promotional-incentives business, the online ticket seller has agreed to acquire Quantum Loyalty Solutions, the company behind Hollywood Movie Money.

Quantum’s Hollywood Movie Money, known as HMM, has been used to issue 1.6 billion movie tickets in the 27 years since it was created. In a recent campaign, for example, Walmart included $20 worth of HMM with the purchase of a Star Trek video game. In another promotion, Office Depot gave those who purchased $75 in merchandise on its website a free $12 movie ticket and a $5 concession coupon.

Quantum also tailors some of its HMM campaigns to promote specific titles, such as when Amazon.com included, with a purchase of a DreamWorks Animation DVD, a $7.50 discount to see its latest release, Turbo.

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The acquisition of Quantum, the terms of which were not disclosed, is the first under Paul Yanover, a former Disney executive who was named CEO of Fandango 10 months ago.

Fandango, an asset of NBCUniversal, boasts 41 million online and mobile visitors each month. Before Quantum, the bulk of Fandango’s sales were from a combination of ticketing surcharges and online advertising, while its modest presence in ticket-related promotions barely moved the needle in terms of sales. Quantum immediately changes that, said Yanover, without offering specifics.

“This really bulks up our effort in this space, and I’m excited about it because it’s a total natural fit to what Fandango is already doing,” he said. “If I give you a ticket as a promotional item, odds are that if you use it you’ll buy one or more additional ticket, and there’s the fit with our core business.”

Yanover said Quantum will continue to operate from its headquarters in Incline Village, Nevada, and that none of its 30 employees will lose their jobs because of the acquisition.

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Quantum, though, operates smaller units aside from HMM, involving promotions focused on gas cards, digital music downloads, credit cards and other products, and Yanover said he'll explore future opportunities with other lines of business moving forward.

“We’re not at a point yet where we’re prepared to change course,” Yanover said. “The lion’s share of Quantum is HMM. Over time as we integrate, we’ll adjust.”

The acquisition is expected to close by the end of September.

Email: Paul.Bond@THR.com