Prosus, a global technology company, announces the signing of a definitive agreement to purchase Despegar (NYSE: DESP), the leading digital travel agency in Latin America, for US$19.5 per share, equivalent to a 33% premium over the closing share price as of December 20, 2024, and a 34% premium over Despegar’s weighted average share price for the past 90 days. The proposed transaction was approved by Despegar’s Board of Directors, which recommended that shareholders vote in favor of the proposed transaction upon the unanimous recommendation of an evaluation committee.
“This acquisition is a clear example of our strategy to generate value by creating a complementary, high-quality business ecosystem. Despegar is a highly profitable company, with an attractive market position and a highly experienced leadership team, which will fit naturally into our operation in Latin America. We are going to accelerate Despegar’s growth, leveraging the multiple points of contact that exist with our portfolio, in addition to our operational experience and great capabilities in AI,” said Fabricio Bloisi, CEO of the Prosus Group.
“This is a promising growth opportunity that can generate great results for Despegar shareholders. The financial terms of the transaction are of great value to our shareholders, and I am convinced that Prosus is the ideal partner to propel us into the next phase of growth. For our clients, this means having access to a broader portfolio of services, better experiences, greater loyalty benefits and more complete solutions, tailored to their needs. Prosus has proven experience in developing technology businesses around the world and has a deep understanding of the Latin American ecosystem, which puts them in an ideal position to accompany us in the next phase of the company's growth,” said Damián Scokin, CEO of Despegar.
Despegar operates in more than 19 markets in Latin America, providing customer services through two main business models: a B2C omnichannel platform that connects with the user through the Internet, an app and conversational channels led by Sofía, a virtual assistant created with AI; and a rapidly expanding B2B segment that offers general solutions for business partners such as banks, airlines and retailers.
Over the past two decades, Despegar has become an industry leader with a proven and scalable business model. The company handles over 9.5 million transactions per year, generating US$5.3 billion in gross bookings, US$706 million in revenue, with a reported EBITDA of US$116 million based on its 2023 full-year results.
Founded in Argentina in 1999, the business scaled and expanded across the region until it began trading on the New York Stock Exchange in 2017. Despegar has become the most recognized travel brand in Latin America and Decolar is its most recognized brand in Brazil, its largest market.
Prosus recognizes the significant potential of expanding its extensive consumer ecosystem in the region to boost Despegar's user count and engagement, while simultaneously introducing new products and services that enhance the platform's value proposition over time.
Through this acquisition, Prosus plans to create synergies between Despegar and other regional businesses such as iFood, a leading delivery platform in Latin America with 60 million customers per year, and Sympla, a leading events platform.
“Latin America is a market that we know and understand well, with real GDP growth of 2-3% for next year and promising long-term projections. Added to this, online travel is expanding significantly around the world and the opportunities in the Latin American region give us confidence that we can work with Despegar to take the business to the next level. This investment will be a very good example of how we can generate value by integrating businesses into our ecosystem, driving growth, innovation, generating a lasting impact,” added Fabricio Bloisi.
The transaction was completed under the typical terms and conditions for this type of transaction and is subject to customary closing conditions, such as approval by Despegar's shareholders' meeting and approval by the corresponding regulatory authorities, with an estimated closing date of Q2 2025. The purchase price will be settled with existing cash.
Morgan Stanley & Co. International plc acted as exclusive financial advisor to Prosus on the transaction, and Davis Polk & Wardell LLP acted as legal advisor.
Source: Prosus.