AMSTERDAM & JOHANNESBURG, South Africa – Prosus, a major global technology player, has announced a definitive agreement to acquire Despegar, a prominent Online Travel Agency (OTA) in Latin America, for $19.50 per share. This acquisition represents a remarkable 33% premium over the closing share price as of December 20, 2024, and a 34% premium based on Despegar’s 90-day volume weighted average price. The transaction has received approval from Despegar’s board of directors, who have recommended that shareholders support the deal.
This acquisition significantly enhances Prosus’s presence in Latin America, ultimately allowing the company to serve over 100 million customers across various sectors, including local e-commerce, travel, and fintech.
According to the CEO of Prosus Group:
“This acquisition demonstrates our commitment to creating a high-quality ecosystem of complementary businesses. Despegar’s profitability and strong market position, combined with its experienced management team, make it an ideal fit for our expansion in Latin America. We are poised to boost Despegar’s growth by utilizing our extensive customer touchpoints and advanced operational expertise.”
Despegar operates across 19 Latin American markets, connecting with customers through an omnichannel B2C platform that includes a web portal, mobile app, and AI-powered conversational assistant. Additionally, it is expanding its B2B segment to provide white-label solutions to partners such as banks and airlines.
Over the last two decades, Despegar has solidified its status as a sector leader, facilitating over 9.5 million transactions annually, yielding $5.3 billion in gross bookings and a reported revenue of $706 million for the fiscal year 2023.
Founded in Argentina in 1999 and listed on the New York Stock Exchange since 2017, Despegar has emerged as the most recognized travel brand in Latin America, particularly with its Decolar brand in Brazil.
With this acquisition, Prosus aims to harness its expansive consumer ecosystem in the region to drive user engagement and introduce new products and services on the Despegar platform.
Furthermore, Prosus envisions creating synergies between Despegar and its other regional ventures, including food delivery leader iFood and event platform Sympla.
The CEO of Prosus Group emphasized:
“Latin America is a region we understand deeply, with expected GDP growth of 2-3% next year. The expanding online travel market provides a unique opportunity to work with Despegar to elevate its business. This investment exemplifies our strategy to create value by integrating businesses into our ecosystem, fostering growth and innovation.”
The deal is subject to customary closing conditions, including shareholder approval and necessary regulatory filings, and is expected to finalize in Q2 2025, funded by existing cash resources.
About Prosus:
Prosus is a global technology company committed to unlocking an AI-driven world for over 2 billion customers. With investments spanning more than 100 companies, Prosus is at the forefront of building local e-commerce leaders in emerging markets.
With significant stakes in Food Delivery, Classifieds, and Fintech, Prosus has established a unique technological ecosystem that fosters innovation and growth across its portfolio. The Prosus Ventures team focuses on investing in transformative technology opportunities across fields such as AI, e-commerce, logistics, and more.
