Alliance Data Systems has finalised an agreement to acquire digital payments firm Bread in a deal valued at approximately $450m.

Bread provides retailers with an omnichannel solution and bank partners with its platform capabilities.

Under the transaction terms, Alliance Data will pay $100m of the deal value in the form of its common stock.

Bread’s point-of-sale (POS) technologies include buy now, pay later (BNPL) and instalment solutions.

The deal will enable Alliance Data to offer pay-over-time products to its brand partners.

Post-acquisition, Bread’s 185 employees and 400 clients will be moved to Alliance Data.

Additionally, Bread’s payment solutions combined with Alliance’s Enhanced Digital Suite (EDS) will boost digital customer experiences.

Subject to receipt of regulatory approval, the transaction is expected to be closed in the fourth quarter of this year.

Bread CEO Josh Abramowitz said: “At Bread, we have always strived to reimagine payments in the digital age, and we are excited for the opportunity to provide Alliance Data with our technology, support and digital development expertise through this agreement.”

Alliance Data president and CEO Ralph Andretta said: “As part of our broader transformation efforts, the acquisition of Bread significantly expands our digital capabilities and payment options for our brand partners and their customers while providing another reason for retailers and brands to choose Alliance Data to help them grow their businesses.

“Bread’s pay-over-time solutions, together with our robust existing private label, general-purpose and commercial products, will further expand our breadth of payment options and capabilities, giving our brand partners across all verticals another way to capitalize on the rapidly growing e-commerce channel.”

Alliance Data chief commercial officer Val Greer added: “Digital payment offerings such as buy now, pay later, appeal to our brand partners’ younger, technology-savvy shoppers seeking convenience, security and choice, and create more opportunities for retailers to drive sales and build brand loyalty among this coveted demographic.”