TA Associates invests in Plusgrade

TA Associates said it has completed an investment in Plusgrade, a leading provider of revenue solutions to the travel industry.

Financial terms of the transaction were not disclosed.

Founded in 2009, Plusgrade helps airlines manage and optimize revenue generated from seat upgrades and other premium services. Through the company´s proprietary software-as-a-service platform, airlines are able to capture incremental, high margin revenue from unsold inventory and enhance the passenger travel experience. Plusgrade´s products are fully white labeled and integrated into existing airline reservation systems. The company serves more than 35 premier airlines globally and has established its market-leading position by focusing on customer service and innovation. Plusgrade has offices in Montreal, Canada and New York.

Consulting firm IdeaWorkscompany estimates that USD49.9 billion, or 6.7 percent, of global airline revenue came from ancillary revenue streams in 2014, up from USD22.6 billion in 2010. In addition to premium seat assignments, ancillary revenue sources include additional offerings such as early bosrding, checked baggage and commissions from hotel bookings and car rentals.

Stikeman Elliott LLP and Goodwin Procter LLP provided legal counsel services to TA Associates. Davies Ward Phillips & Vineberg LLP and Greenberg Traurig LLP served as legal counsel to Plusgrade.

Plusgrade is the market leading provider of upgrade solutions, a key segment of the fast-growing ancillary revenue and merchandising sector in the global airline industry. Founded in 2009, Plusgrade has offices in Montreal, Canada and New York.

TA Associates is one of the largest and most experienced global growth private equity firms. The firm has invested in more than 450 companies around the world and has raised over USD18 billion in capital. With offices in Boston, Menlo Park, London, Mumbai and Hong Kong, TA Associates leads buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries.