API Leisure & Lifestyle announces major business review including transfer of corporate employee benefit business to Reward Gateway.
Tuesday 24th March 2015, Sydney
API Leisure & Lifestyle, the 95 year old member-owned organisation originally formed for Australian Post employees announced major changes today including the closure of its retail stores in three states and the sale of it’s corporate employee benefits business to Reward Gateway.
For 17 years, API has runs employee benefit programmes in Australia that allow employees to obtain products and services at beneficial rates. Retailers like JB Hi-fi, Harvey Norman and Woolworths benefit from exposure into a closed group of working people and in return provide additional levels of saving over and above that which everyday consumers can access directly. But as shopping habits have changed and retail spend has moved to a new generation of heavily discounted online retailers, clients have been wanting more.
API’s Chief Executive Officer, Malcolm Harley said “After 17 years of pioneering in the employee-benefits space, API is reacting to rapid changes in technology and the way people like to shop. We’ve got great heritage and loyal clients but times are changing and both employees and employers are wanting more. This change protects the investment we have made in the business and respects the changing and expanding needs of our clients. We’re delighted to have found a world-class partner in Reward Gateway who have a business founded on technology and service and are incredibly well placed to serve API’s employer clients in the future.”
The new combined service will run under Reward Gateway’s brand and technology which is seen to have significant strength in online shopping as well as a host of additional products and services attractive to HR. The two companies have worked on bringing their benefit programmes together so that both Reward Gateway and API clients will see the benefits from both programmes almost immediately. API clients which includes Accenture, State Street Bank, Citi, Thomsons Reuters and Novartis will also have immediate access to a wider range of services including reward & recognition products, employee communications platforms and SmartHub™, a next-generation HR Intranet operating across mobiles and tablets.
Tracy Mellor, Managing Director of Reward Gateway in Australia said “These are really exciting times for all of our clients - not only have we got an opportunity to make one world class product combining the best of what both companies have to offer, but we’re also launching our new product SmartHub™ which will be a real game changer for HR. We’ve listened to what HR have been telling us - it’s not just about discounts and benefits - it’s about providing one place where HR can really work on employee engagement. I’m really looking forward to working with all the new clients and helping them create happier workforces”
API will continue operating it’s traditional member business for employees and retirees from Telstra and Australia Post. Those members will also benefit from the new enhanced benefit portfolio thanks to an outsourcing agreement between API and Reward Gateway. API will also continue running it’s holiday homes portfolio and other services direct to members and has plans to develop new propositions in customer loyalty.
The acquisition will see Reward Gateway expand its team in Sydney and open a new office in Melbourne.
About Reward Gateway
Reward Gateway is the global leader in employee engagement, reward and benefit technology with a presence in Australia and New Zealand, USA and UK. The company employs over 220 people servicing more than 1,000 clients worldwide including IBM, McDonalds, KPMG, Fortescue and AMP and has global revenues in excess of $350 million. The business has been operating in Australia since 2009 and also has offices in New York and London.