Warburg Pincus, a global private equity firm focused on growth investing, has signed a deal with dnata, an air service provider, to acquire a majority stake in mercator.

 

Mercator is a Dubai-based provider of software and technology-enabled outsourcing solutions to the global aviation industry. Dnata will retain a minority stake, said a statement.

 

The company helps airlines move passengers and cargo to their destinations safely and on time with its five key products including cargo operations and management, financial solutions, loyalty and CRM, safety and passenger reservation, and departure control.

 

Its solutions are used by more than 125 airline clients in over 80 countries and six continents.   

 

The Warburg Pincus investment will enable mercator to strengthen its competitive position, increase its market share and accelerate global growth, said the statement.

 

Warburg Pincus will also continue to invest in best-in-class products and provide capital for acquisitions. 

 

Joseph Schull, managing director at Warburg Pincus, said: “Technology is a key area of domain expertise and investment focus for us. 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.

 

“Mercator is one of the aviation industry’s leading solutions companies, benefitting from a superior product  base, blue-chip customers, and capable management.  We look forward to building on the expertise of the mercator staff to accelerate the company’s growth.”

 

David Tibble, who will serve as mercator’s executive chairman, said: “I am delighted to be joining mercator, which benefits from a strong brand and market position.  I look forward to working with the existing management team and mercator’s blue-chip client base to enhance and develop our product offering and and significantly grow the business in the transport, travel and logistics industry.”

 

Gary Chapman, president, dnata added: “Warburg Pincus brings significant technology and aviation experience as well as a track record scaling businesses globally. They also bring new perspective, fresh thinking, unparalleled thought leadership, and experience to the table.  This shift in tempo will benefit mercator’s customers and provide new opportunities for its staff.” - TradeArabia News Service