Caisse-backed Plusgrade completes $385-million deal for fellow Canadian travel-tech company Points

Plusgrade LP has completed a US$385-million takeover of publicly listed Points.com Inc., combining two Canadian digital companies that help travel giants make billions of dollars of ancillary revenue.

Privately held Plusgrade, a Montreal company backed by Quebec investment heavyweights Caisse de dépôt et placement du Québec and private equity firm Novacap, partners with airlines, passenger rail and cruise ship operators, offering a digital platform that allows travelers to buy or bid on seat or cabin upgrades and the right to buy empty seats next to them. The 170-person company earns a cut of every transaction.

The deal comes as both Plusgrade and Points continue to rebound from the pandemic, which hurt their business when global travel all but ground to a halt. Plusgrade was profitable, growing fast and generating about US$50-million annually heading into the pandemic, just over a year after the Caisse invested US$200-million in late 2018, valuing it at US$600-million.had been profitable 10 out of the previous 11 years and had seen annual revenue increase fivefold, to US$401-million, over that period.

Mr. Harris said the deal was largely funded by an equity injection from the two Quebec institutions and himself, plus an undisclosed portion of debt.

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