Summit Partners, Bridgescale Partners Invest in VIPGift

A leader in the fragmented $400 billion incentives industry, VIPGift has distinguished itself by providing one-stop customized solutions and technologies that help customers drive growth and achieve strategic corporate objectives. Clients use VIPGift’s products and services for customer acquisition and retention programs, employee incentive and reward programs, marketing initiatives, and consumer rebate programs. VIPGift’s wide array of customized rewards -- including points, certificate, and prepaid card based programs -- have helped position the company as a market leader.

A. Hamid Andalib, VIPGift’s Founder and CEO, has sold a majority stake to Summit Partners and Bridgescale Partners. He will remain involved in the business, both as an investor and advisor. As part of the transaction, Summit Partners and Bridgescale Partners have brought in Richard Char as President, and Patrick Gildea as Senior Vice President of Finance and Corporate Development.

Said Hamid Andalib, “Our committed team of talented employees has created a highly successful and technically advanced global incentive company. Under the leadership of Richard Char and his experienced management team, VIPGift is positioned to become the industry leader in the near future. I remain inextricably tied to my VIPGift family and am completely committed to assisting Mr. Char in taking the company to the next level while providing a great future for our employees.”

“Hamid has built VIPGift into a leadership position in the prepaid incentives business in just five short years,” said VIPGift’s Richard Char. “The company continues to offer a winning proposition to corporate customers who are increasingly demanding turnkey corporate incentive and consumer loyalty programs which can be deployed quickly – with a minimum of up front costs – and which give the customers and consumers a broad range of redemption options. With the financial support of Summit Partners and Bridgescale Partners, I believe VIPGift can further establish its leadership in this fragmented market.”

“Summit Partners targets privately held companies – such as VIPGift – that have bootstrapped their businesses to profitability and established leadership positions in their industry. VIPGift’s brand equity and reputation for great customer service is second to none in the incentive industry. We are pleased to partner with VIPGift and help the company to continue extending this leadership position,” said J.J. Kardwell, a Principal with Summit Partners.

“Bridgescale Partners invests in category leading private companies in rapidly growing markets. VIPGift is the leader in the fastest growing segment of the prepaid market, with a strong track record of product innovation and customer service,” said Rob Chaplinsky, a Managing Director with Bridgescale Partners.

J.J. Kardwell and Summit’s Dean Jacobson will join the VIPGift board, along with Rob Chaplinsky of Bridgescale Partners and VIPGift’s Richard Char.