Ancillary revenue company Plusgrade has acquired loyalty commerce platform Points for $385 million. Montreal-based Plusgrade and Toronto-based Points first announced the deal in early May.
Plusgrade says the combined entity will generate more than $3.5 billion in new revenue opportunities this year for its 140 airline, hospitality, cruise, rail and financial services partners across 60 countries.
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Ken Harris, Plusgrade founder and CEO, says the merger helps the company “continue to build upon our vision of becoming a global ancillary revenue powerhouse, enabling our global travel partners to unlock revenue and deliver outstanding travel experiences for their customers.”
“We are excited that two Canadian companies, one in Montreal and one in Toronto, are joining forces to create a uniquely Canadian success story with a global footprint and impact,” he says.
Plusgrade helps airlines, cruise lines and rail operators generate
new revenue from seat upgrades and other premium services. Last September private
equity firm Novacap acquired a “substantial equity interest” in Plusgrade.
Points’ platform enables reward programs to simplify and enhance
the way members can use their loyalty currencies.
Points CEO Rob MacLean calls the acquisition “transformational.”
“Combining Points’ loyalty expertise with Plusgrade’s capabilities in unlocking new sources of revenue for travel partners represents an exciting opportunity, particularly in an industry poised for a strong recovery,” he says.
Plusgrade and Points will continue to operate with their existing leadership teams.