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Tue 5 Apr 2016 01:00 PM

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Dubai-based tech firm buys US revenue management provider

Warburg Pincus acquires a majority stake in the Dubai-based Mercator in 2014 from Emirates Group's Dnata

Dubai-based tech firm buys US revenue management provider
(Getty Images)

Dubai-based Mercator, a technology services company backed by private equity firm Warburg Pincus, has bought a Seattle-based revenue management systems firm, its second acquisition in less than a year, it said on Monday.

The company, which focuses on the travel, transportation and logistics sectors, did not disclose the cost of the acquisition of Revenue Management Systems (RMS).

Mercator has been focusing on growing its expertise and service offering since Warburg Pincus acquired a majority stake in the Dubai-based company in 2014 from Emirates Group's Dnata.

In June 2015 it acquired Catapult International, a technology services provider for freight forwarders, shippers and carriers.

More than 70 airlines use RMS's revenue management technology and the company has been branching out to other transportation segments including rail and cargo, Monday's statement said.

Mercator Chief Executive Cormac Whelan said it was highly likely Mercator would make further acquisitions in coming years to broaden its product and service offering.

"Mercator has an ambitious growth plan which is a mix of organic and acquisition-led growth," he said. "As we see opportunities in the market to acquire innovative technology and platforms we will be prone towards action."

Mercator was Warburg Pincus's first direct investment in the Middle East.

Together with fellow US private equity firm General Atlantic, it bought a 49 percent stake in Dubai-based payments processor Network International in November 2015.

Warburg Pincus typically invests between $50 million and $500m in every direct investment.

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