Indigo Partners LLC, and WOW air, the Icelandic airline based in Reykjavik, have agreed in principle for Indigo to invest in WOW, the companies said.
Terms of the transaction were not disclosed. Following successful completion of due diligence, the parties would work to close as soon as practicable.
WOW is advised in this transaction by Plane View Partners LLC, the US air transportation advisory firm.
Indigo Partners is a private equity firm established by W. A. Franke in 2003 to pursue acquisitions and strategic investments in the air transportation and related industries.
WOW air is a low-fare, long-haul airline based in Iceland with a young, low emission fleet. The airline was founded in November 2011 and currently serves 25 destinations across Europe and North America.