AMSTERDAM & JOHANNESBURG – Prosus, a leading global technology company, has made headlines with its definitive agreement to acquire Despegar, a prominent Latin American Online Travel Agency (OTA), for $19.50 per share. This acquisition offers a substantial 33% premium over Despegar’s closing share price as of December 20, 2024, and a 34% premium relative to the company’s 90-day volume weighted average price. The transaction has received approval from Despegar’s board of directors, which has strongly recommended that shareholders vote in favor of the acquisition.
This strategic move enriches Prosus’s ecosystem in Latin America, which will now cater to over 100 million customers across various sectors, including e-commerce, travel, and fintech.
Prosus Group’s CEO highlighted that this acquisition exemplifies their commitment to creating value through an integrated ecosystem of complementary businesses. Despegar stands out for its profitability, robust market position, and experienced management, making it an ideal fit for Prosus’s operations in Latin America. The firm aims to enhance Despegar’s growth trajectory by tapping into the expansive customer touchpoints within its portfolio, coupled with advanced operational expertise and AI capabilities.
Despegar operates in 19 Latin American markets through a dual business model that includes an omnichannel B2C platform and a growing B2B segment offering white-label solutions for partners like banks and airlines. Over the past two decades, the company has evolved into a market leader handling over 9.5 million transactions annually, with gross bookings reaching $5.3 billion and revenue of $706 million reported for 2023.
Having been founded in Argentina in 1999, Despegar has significantly expanded its reach, becoming the most recognized travel brand in Latin America, particularly with its Decolar brand in Brazil.
The acquisition is expected to create synergies between Despegar and other regional businesses, such as iFood, Latin America’s leading food delivery platform, and Sympla, a key events platform.
Prosus sees promising potential in the Latin American market, with an anticipated real GDP growth of 2-3% next year. The surge in online travel opportunities in the region assures confidence in working collaboratively with Despegar to elevate the business. The company is set to close the transaction in Q2 2025, contingent upon customary closing conditions and shareholder approval.
