Tech Big Prosus to Buy Latin America’s Prime On-line Journey Company, Despegar for $1.7bn

World expertise firm Prosus is about to accumulate Despegar, the main on-line journey company in Latin America, for $1.7 billion. The acquisition will probably be at $19.50 per share, marking a 33% premium on the share value as of December 20, 2024.

Despegar’s board of administrators accredited the acquisition and really useful that shareholders vote in favor of the proposed deal. This transaction will notably develop Prosus’s Latin American client base, with the corporate set to serve over 100 million prospects throughout e-commerce, journey, and fintech sectors post-acquisition.

Prosus CEO Fabricio Bloisi said that the acquisition highlighted the corporate’s technique to construct worth by making a high-quality ecosystem of complementary companies. He praised Despegar’s profitability, market place, and skilled administration staff, stating that these elements made the corporate a super addition to Prosus’s Latin American operations. Bloisi plans to speed up Despegar’s development by leveraging Prosus’s intensive client touchpoints, operational experience, and superior AI capabilities.

Damián Scokin, Despegar’s CEO, echoed Bloisi’s enthusiasm, stating that the transaction represented important worth for Despegar stakeholders. He expressed confidence that Prosus could be the best accomplice to drive Despegar’s subsequent development section. He additionally promised Despegar prospects would profit from a broader vary of providers, improved experiences, and extra tailor-made options.

Based in 1999 in Argentina, Despegar operates in over 19 Latin American markets. It handles over 9.5 million transactions yearly, generates $5.3 billion in gross bookings and $706 million in income, and reviews an EBITDA of $116 million based mostly on its full-year 2023 outcomes.

Prosus goals to leverage its intensive regional client ecosystem to drive consumer development and engagement on Despegar whereas introducing new services to boost the platform’s worth over time. It additionally plans to create synergies between Despegar and its different regional companies, similar to iFood and Sympla.

The transaction is topic to customary closing situations, together with approval by Despegar shareholders and the receipt of mandatory regulatory approvals. It’s anticipated to shut in Q2 2025, funded from present money assets.