- Plusgrade has agreed to acquire Points.com (PTS) in an all-cash transaction
- Total consideration is approximately US$385M, a 45-per-cent premium to Points’ closing price on May 6, 2022
- The companies view the transaction as consolidating their leadership in the global ancillary revenue space
- Points.com manages currencies for nearly 60 loyalty rewards programs around the globe
- Points (PTS) is up by 42.23 per cent trading at $31.66 per share
Plusgrade has agreed to acquire Points.com (PTS) in an all-cash transaction.
Plusgrade is a leading ancillary revenue platform for the global travel industry.
It will pay US$25 per Points common share for a total of approximately US$385M. This represents a 45-per-cent premium to Points’ closing price on the TSX on May 6, 2022.
The transaction is not contingent on any financial conditions but will be subject to shareholder approval.
Plusgrade will fund the transaction with equity from Novacap and CDPQ and debt from recognized financial institutions.
The companies expect the acquisition to close in early July 2022.
“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, Points’ CEO.
“The combination of our two companies provides a unique opportunity to bring together two Canadian success stories that are each leading operators in different aspects of ancillary revenue and loyalty commerce, to create something much greater, for the benefit of our partners in the global travel industry, and ultimately for the benefit of the traveller,” added Ken Harris, Founder and CEO of Plusgrade.
Points.com manages currencies for nearly 60 loyalty rewards programs around the globe.
Points (PTS) is up by 42.23 per cent trading at $31.66 per share as of 9:33 am EST.
