Capillary Technologies Acquires Mastercard's Session M in $20 Million All-Cash Deal
In a significant move within the loyalty management sector, Bengaluru-headquartered Capillary Technologies India announced late Tuesday the acquisition of Mastercard-owned Session M. The all-cash transaction is valued at $20 million upfront, with the final payout subject to adjustments for debt, working capital, and related factors at closing.
Strategic Expansion Through Acquisition
The acquisition will be executed through Capillary Pte Ltd, which will invest in Session M Inc and its related entity, Session M Czech Republic. This deal represents a key component of Capillary's inorganic growth strategy, aimed at strengthening its presence in the North American and Latin American loyalty markets while enhancing its existing portfolio in the Asia Pacific region.
Founded in 2011 and acquired by NYSE-listed Mastercard in 2019, Session M is a US-based company operating in the loyalty software-as-a-service (SaaS) space. It reported a turnover of $50.5 million in the calendar year 2025, following $54.5 million in 2024 and $57 million in 2023. The company has established a significant presence across North America, Latin America, and Asia Pacific, serving a diverse clientele in sectors such as food and beverages, consumer goods, retail, airlines, and oil and gas.
Post-Acquisition Synergies and Growth Prospects
Capillary highlighted that Session M's complementary business model and long-tenured blue-chip clientele are expected to drive post-acquisition efficiencies in the loyalty segment. According to an investor presentation on the deal, the combined entity is projected to achieve over $115 million in annual recurring revenue and serve more than 150 customers globally.
This acquisition comes shortly after Capillary Technologies went public in November 2025, marking a pivotal step in its expansion efforts. By integrating Session M's operations, Capillary aims to leverage synergies that enhance its service offerings and market reach, positioning itself as a stronger competitor in the global loyalty management landscape.
The deal underscores the ongoing consolidation in the tech-driven loyalty sector, where companies are increasingly seeking strategic acquisitions to broaden their geographic and industry footprints. With Session M's established market presence and Capillary's growth trajectory, this merger is poised to create a formidable entity capable of delivering enhanced value to clients worldwide.
