Alliance Data Systems is merging its loyalty-marketing consultancy Frequency Marketing, Inc. with its database-marketing firm Epsilon.

The merger couples Epsilon's database management expertise with Frequency Marketing's analytics and consumer communications skill. Frequency Marketing keeps its Cincinnati headquarters and staff; clients include Verizon, Best Buy, American Express and LaQuinta. Epsilon execs will take an active role in building Frequency Marketing's business.

Epsilon handles database marketing for AstraZeneca, BellSouth, Cigna HealthCare, Hilton, The National Geographic Society, Target Stores, Telvista, Verizon Wireless Puerto Rico and a handful of medical associations including the Alzheimer's Association and National Multiple Sclerosis Society. There are no client conflicts between Frequency Marketing and Epsilon.

Wakefield, MA-based Epsilon is in growth mode. In September, Epsilon bought e-mail and marketing-automation firm Bigfoot Interactive for about $120 million. New York-based Bigfoot, now called Epsilon Interactive, brought its 85 staffers and a heavy presence among financial services (JPMorgan Chase & Co., Capital One, Discover Financial Services) and retailers (Amazon Services, Target, Expedia). Bigfoot CEO Al DiGuido became president of Epsilon Interactive.