- Acquisition creates a new global leader in ancillary revenue
for the travel industry
- Plusgrade is now expected to generate over US$3.5 billion in new revenue opportunities for
its partners through 2022
- Acquisition creates unmatched scale in the global travel
industry, expanding from 80 to over 140 partners globally
MONTREAL, June 30,
2022 /CNW Telbec/ - Plusgrade, a leading ancillary
revenue platform for the global travel industry, today announced
that it has completed its previously announced acquisition of
Points.com Inc. (TSX: PTS) (NASDAQ: PCOM) ("Points"), the
global leader in powering loyalty commerce, creating a new global
ancillary revenue powerhouse for the travel industry.
This combination creates a unique leadership position in
ancillary revenue, establishing a market presence that is unmatched
and unrivaled in this segment of the global travel industry. The
combined entity is expected to generate more than US$3.5 billion in new revenue opportunities in
2022 for more than 140 airline, hospitality, cruise, rail and
financial services partners across 60 countries. This figure is
projected to grow as the travel industry continues to recover.
Two of the largest sources of ancillary revenue for the global
travel industry consist of Frequent Flyer Programs and A la Carte
Features including seating, according to "The 2021 CarTrawler
Yearbook of Ancillary Revenue" by IdeaWorksCompany. By bringing
together two leaders in each of these respective spaces, the
combined company creates a robust platform that delivers a
meaningful impact to the bottom lines of travel suppliers
worldwide. In addition to Plusgrade's flagship Premium Upgrade and
Seat Blocker products, the acquisition of Points will enable the
expansion of additional value-adding and revenue-generating
products and services, as well as growth into adjacent
industries.
"With the coming together of our two companies, we 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
now have a broader suite of offerings on the Plusgrade platform
that will help drive profitability for our partners while
simultaneously elevating their customers' travel experiences,
giving further runway to our maxim: millions of smiles and billions
of dollars," said Ken Harris,
Founder and Chief Executive Officer of Plusgrade. "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.
Both companies have similar cultures and a common goal of
partner success, and we look forward to continuing to shape
and grow the ancillary revenue landscape together. We are pleased
to have the backing and confidence of leading global investors CDPQ
and Novacap as we kick off this next phase in the Company's
history."
"This is an exciting day for Points in joining forces with
Plusgrade, we'll form part of a truly global leader in ancillary
revenues across a number of industries. Our two teams are a natural
fit, and we are excited to create even greater value for our
Partners together. This is a transformational day for our
company and the travel industry at large. 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," said Rob MacLean,
Chief Executive Officer of Points.
''We are very proud of our partnership with Ken and the
Plusgrade team, supporting them in their mission to bring
innovative revenue-generating solutions to the global travel
industry," said David Lewin,
Senior Partner at Novacap. ''Our commitment to
Plusgrade is based on our strong appreciation of the underlying
business model, the caliber of the leadership team and the market
potential. Today's transaction is testament to the implementation
of Plusgrade's growth plan."
"As one of Plusgrade's major shareholders for nearly four
years, CDPQ is proud to contribute to this transformative
acquisition that will see Plusgrade expand its workforce and
product offering," said Kim
Thomassin, Executive Vice-President and Head of Québec at
CDPQ. "In addition to creating a global champion, this
transaction unites a broad talent pool with recognized expertise in
the ancillary revenue sector and loyalty commerce in the global
travel industry."
Plusgrade and Points will continue to operate with their
existing leadership teams.
Pursuant to the statutory plan of arrangement, a wholly-owned
subsidiary of Plusgrade acquired all of the issued and outstanding
common shares of Points for US$25.00
per common share in cash.
As a result of the arrangement, Points shares will be delisted
from the TSX and the Nasdaq shortly hereafter. Points will also
apply to cease to be a reporting issuer in all of the provinces of
Canada.
In connection with the arrangement, 13994384 Canada Inc., a
wholly-owned subsidiary of Plusgrade and the purchaser for purposes
of the arrangement, has filed an early warning report under Points'
profile on SEDAR. The address of Points is 111 Richmond Street
West, Suite 700, Toronto, Ontario,
M5H 2G4, and the address of 13994384 Canada Inc. is 155 Wellington
Street West, Toronto, Ontario
(Canada), M5V 3J7.
Full details of the arrangement and certain other matters are
set out in the management proxy circular of Points under its issuer
profile on SEDAR at www.sedar.com and EDGAR at www.sec.gov.
About Plusgrade
Plusgrade powers the global travel industry with its portfolio
of leading ancillary revenue solutions. Over 140 airline,
hospitality, cruise, passenger rail, and financial services
companies trust Plusgrade to create new, meaningful revenue streams
through incredible customer experiences. As an ancillary revenue
powerhouse, Plusgrade has generated billions of dollars in new
revenue opportunities across its platform for its partners, while
creating enhanced travel experiences for millions of their
passengers and guests. Plusgrade was founded in 2009 with
headquarters in Montreal and has
offices around the world.
About Points
Points is a trusted partner to the world's leading loyalty
programs, leveraging its unique Loyalty Commerce Platform to build,
power, and grow a network of ways members can get and use their
favourite loyalty currency. The platform combines insights,
technology, and resources to make the movement of loyalty currency
simpler and more intelligent for nearly 60 reward programs
worldwide. Founded in 2000, Points is headquartered in Toronto with teams operating around the
globe.
For more information, visit www.points.com.
About CDPQ
At CDPQ, we invest constructively to generate sustainable
returns over the long term. As a global investment group managing
funds for public retirement and insurance plans, we work alongside
our partners to build enterprises that drive performance and
progress. We are active in the major financial markets, private
equity, infrastructure, real estate and private debt. As at
December 31, 2021, CDPQ's net assets
totalled CAD 419.8 billion. For more
information, visit cdpq.com, follow us on Twitter or consult our
Facebook or LinkedIn pages.
CDPQ is a registered trademark owned by Caisse de dépôt et
placement du Québec and licensed for use by its
subsidiaries.
About Novacap
Founded in 1981, Novacap is a leading North American private
equity firm with over C$8B of AUM
that has invested in more than 100 platform companies and completed
more than 150 add-on acquisitions. Applying its sector-focused
approach since 2007 in TMT, Industries and now Financial Services,
Novacap's deep domain expertise can accelerate company growth and
create long-term value. With experienced, dedicated investment and
operations teams as well as substantial capital, Novacap has the
resources and knowledge that help build world-class businesses.
Novacap has offices in Brossard,
Québec and Toronto, Ontario. For
more information, please visit www.novacap.ca.
For more information or to obtain a copy of the early warning
report filed by 13994384 Canada Inc. in connection with this press
release:
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SOURCE Plusgrade