Warburg Pincus has signed a definitive agreement to buy a majority stake in aviation software company Mercator. No financial details of the transaction were disclosed.
A Warburg spokesperson declined to comment.
The private equity firm reached the acquisition agreement with air services provider, dnata, which will retain a minority stake in the business. The deal will use capital from Warburg’s $11.2 billion Fund XI, which it closed last May.
Dubai-headquartered mercator provides technology and software to help airlines move passengers and cargo to their destinations. The company’s solutions are used by more than 125 airline clients in more than 80 countries. Current clients include United Airlines, Thai Airways, Qantas, British Airways, Singapore Airlines, JetBlue, Westjet and South African Airways, according to a statement.
“We view it as an excellent platform to build a market-leading transport, travel & logistics business of scale,” said Joseph Schull, managing director at Warburg Pincus, in a statement. “We have been looking for a world-leading software and tech-enabled outsourcing platform to address the transport, travel and logistics sector for some time.”
Warburg will continue to invest in Mercator products and provide capital for acquisitions, the statement said.
Warburg has previous experience in the aviation technology sector having established WNS Global Services, a business process outsourcing company in 2002 following the carve-out of British Airways’ key business processes from British Airways. WNS’s former executive chairman, David Tibble, will serve as Mercator’s executive chairman.