PlusGrade and Points.com deal with some of the same partners, and they can now approach them with a collaborative pitch.
Montreal-based PlusGrade, which helps airlines and cruise lines tap into ancillary revenue streams, announced a deal to acquire Toronto-headquartered Points.com for $385 million in cash.
The $25 per share cash offer for Points.com, which powers airline loyalty programs among other services, represents a 52 percent premium to Points’ 20 day volume-weighted average trading price on the Toronto Stock Exchange through May 6, the companies said.
The executive team and board at Points.com supports the deal, which is pending subject to customary regulatory approvals.
“We are thrilled to be joining forces with Plusgrade in what will become a truly global leader and provider of value-adding and revenue-generating services for partners in the airline, hospitality, rail and financial services industries,” said Rob MacLean, CEO of Points, in a statement.
Arguing that both companies represent Canadian success stories, PlusGrade founder and CEO Ken Harris said in a statement that the two companies are leading operators in different areas of ancillary revenue generation and loyalty and have the opporunity “to create something much greater, for the benefit of our partners in the global travel industry, and ultimately for the benefit of the traveller.”
There is a degree of overlaps among their partners, and the opportunity to take advantage of synergies.
The companies expected the deal to close in early July.
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Photo credit: Security lines at Hartsfield-Jackson International Airport in Atlanta in a 2019 file photo. Points.com and PlusGrade intend to merge to improve the passenger experience.