In a deal announced today, Revenue Management Systems, the developer of a revenue management software known as AirRM, has been acquired by Dubai-based travel software company Mercator.
Seattle-based Revenue Management Systems provides its AirRM software to more than 70 airlines, including Ryanair, AirAsia and Virgin America.
The software helps companies predict and increase revenue by providing information on competitive fares and how often people are going through with purchases when looking at flight details. The company, led by CEO Scott Schade, has recently expanded into rail, parking and cargo revenue management as well.
“In today’s dynamic travel and transportation marketplace, the ability to react quickly to market conditions, optimize, and drive intelligence and predictability into our customer’s business is a strategic imperative,” Mercator CEO Cormac Whelan said. “[Revenue Management Systems] not only has a leadership position in airline revenue management, but is now applying its state of the art predictive and optimization models to other segments of the transportation industry, including rail and cargo.”
Mercator plans to expand and integrate Revenue Management Systems’ products into the company’s larger portfolio. The acquisition is the second move in the transportation and travel industry in the past year from Mercator, which acquired Catapult International in July.
Revenue Management Systems was founded in 1996 and has been a self-funded company. It has offices in Australia, Canada, Great Britain, The Netherlands, Spain, Singapore and Uruguay in addition to its Seattle headquarters. The Seattle team of about a dozen won’t see any significant changes as part of the acquisition.
Mercator was backed by Warburg Pincus, a private equity firm with a focus on growth investing. Terms of the deal were not disclosed.