Caisse de dépôt et placement du Québec (la Caisse) is taking an equity interest totalling $200 million in Plusgrade, a provider of revenue solutions to the global travel industry. The investment values Plusgrade at over $600 million.
Plusgrade was founded in Montréal in 2009, and provides service upgrade solutions for travel companies like Air Canada and Lufthansa, allowing them to optimize their seat inventory. Its signature product allows travellers to bid on service upgrades.
“Plusgrade has a unique and innovative business model that is revolutionizing practices in its industry. Meeting an airline industry need, their products have been quickly marketed around the world in the last few years,” said Mathieu Gauvin, the senior vice-president, Québec, at la Caisse. “This investment is aligned with our strategy of supporting the growth of Québec companies that prioritize innovation to drive their international development.”
Through the investment, la Caisse acquired a portion of the shares held by TA Associates, a leading global growth private equity firm that will continue to be a major shareholder, alongside the management team and other investors. With this backing, Plusgrade will continue to execute its expansion plan, which includes penetrating new international markets and expanding its suite of products.
“We are very excited to welcome la Caisse as our new institutional investment partner as we accelerate our growth into new markets and verticals,” said Ken Harris, founder and CEO of Plusgrade. “The confidence that la Caisse and TA Associates have shown in Plusgrade is a testament to the value that our talented team is delivering across our global footprint of travel suppliers. We look forward to la Caisse joining our Board and providing valuable guidance as we pursue our strategic growth initiatives.”