Barcelona-based Accelya, a leading provider of financial and commercial solutions to the airline industry, and Dubai-based Mercator, a global provider of product-enabled solutions to the travel and transportation industry, announced their intention to merge.
Terms of the transaction were not disclosed.
Accelya Kale Solutions Ltd, the Accelya Group entity listed on the Bombay Stock Exchange in India, disclosed in a regulatory filing on Saturday that Warburg Pincus, the US-based private equity firm, will be the majority shareholder in the combined company following its acquisition of Accelya from Chequers Capital.
Warburg Pincus had acquired a majority stake in Mercator in 2014. The US private equity group was reportedly in exclusive talks to buy Accelya for €650 million. With the recent disclosure, it has been confirmed that Warburg Pincus bought Accelya from Chequers Capital. However, financial details of the deal were immediately not available.
Mumbai-headquartered Accelya Kale Solutions, formerly known as Kale Consultants Ltd, became part of the Accelya Group in 2011. The company provides solutions to the airline and travel industry.
Together, Accelya and Mercator will offer a broadened product portfolio with complementary offerings including revenue accounting, revenue management and revenue assurance, cargo management, payment solutions, data analytics, cost management and commercial solutions. It will have a global footprint and more than 400 clients worldwide, including 250 airlines.
The combined entity will have pro forma annual revenues in excess of $200 million.
Adarsh Sarma, managing director of Warburg Pincus, said: "We see very compelling growth opportunities in the combination of Accelya and Mercator. Together, these two best-in-class companies will provide an improved and broadened suite of products and services to their
customers whilst continuing to be at the forefront of new product innovation and development."
The transaction is expected to close in the first quarter of 2017. Warburg Pincus was advised by Citi (M&A) and Freshfields (legal counsel). Accelya and Chequers Capital were advised by Evercore and BNP Paribas (M&A) and Ashurst (legal counsel).
On Friday, shares of Accelya Kale Solutions traded at Rs 1,608, down 1 per cent from their previous close.