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.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Canadians told to ‘pack your patience’ as inflation and airport chaos threaten travel industry’s reboundShort-term gains might not be enough to offset long-term pains for devastated travel sector, experts fear. Thanks Trudeau Let's face it. Everything that Trudeau and his enablers had touched, had turned into a massive pile of excrement. Some piles, like irresponsible fiscal policies (QE fuelled housing and inflation) vaccine mandates, airport and passport office policy fiascoes keep on growing. So much for the 'We're all in this together'. Another well-thought-out and constructive move by my PM in his plan to resign with cause.
Source: TorontoStar - 🏆 60. / 55 Read more »

Cannabis company Canopy Growth to exchange $255.4-million in notes for shares and cashConstellation Brands Inc. has agreed to swap half of the $200-million in notes it holds under the deal Poll: Is cannabis legalization in Canada sustainable?
Source: globeandmail - 🏆 5. / 92 Read more »