World expertise firm Prosus is ready to amass Despegar, the main on-line journey company in Latin America, for $1.7 billion. The acquisition will likely be at $19.50 per share, marking a 33% premium on the share value as of December 20, 2024.
Despegar’s board of administrators authorised the acquisition and advisable that shareholders vote in favor of the proposed deal. This transaction will notably develop Prosus’s Latin American shopper base, with the corporate set to serve over 100 million prospects throughout e-commerce, journey, and fintech sectors post-acquisition.
Prosus CEO Fabricio Bloisi acknowledged 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 group, stating that these components made the corporate a really perfect addition to Prosus’s Latin American operations. Bloisi plans to speed up Despegar’s development by leveraging Prosus’s in depth shopper touchpoints, operational experience, and superior AI capabilities.
Damián Scokin, Despegar’s CEO, echoed Bloisi’s enthusiasm, stating that the transaction represented vital worth for Despegar stakeholders. He expressed confidence that Prosus could be the best accomplice to drive Despegar’s subsequent development part. 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 studies an EBITDA of $116 million based mostly on its full-year 2023 outcomes.
Prosus goals to leverage its in depth regional shopper ecosystem to drive person development and engagement on Despegar whereas introducing new services and products to reinforce the platform’s worth over time. It additionally plans to create synergies between Despegar and its different regional companies, corresponding to iFood and Sympla.
The transaction is topic to customary closing circumstances, together with approval by Despegar shareholders and the receipt of needed regulatory approvals. It’s anticipated to shut in Q2 2025, funded from present money sources.
