Plusgrade gets $150M capital raise to expand tech for upgrades

Plusgrade, a specialst in revenue enhancing technology, has received a $150 million boost from an institutional investor.

Caisse de dépôt et placement du Québec (CPDQ) is taking equity in the Montreal-based business, which it claims will value the company at $450 million.

Plusgrade provides software to a number of large airlines including Air Canada, Lufthansa and Singapore Airlines which means they can offer customers the opportunity to bid for seat upgrades.

The company plans to continue its expansion to new markets as well as expand its products and services out of three main offices in Montreal, New York and Sinapore.

CEO Ken Harris says: "The confidence that la Caisse and TA Associates have shown in Plusgrade is a testament to the value that our talented team is delivering across our global footprint of travel suppliers."

For the purpose of the deal, CPDQ acquired a portion of shares held by private equity firm TA Associates, which continues to be a major shareholder.

Plusgrade, which was founded in 2009, signed a deal in 2016 offering its upgrade solution via Amadeus Altea.

Harris claimed at the time that more than 50 carriers had seen revenue growth as a result of using its technology.