Tech Giant Prosus to Purchase Latin America’s Top Online Travel Agency, Despegar for $1.7bn

Global technology company Prosus is set to acquire Despegar, the leading online travel agency in Latin America, for $1.7 billion. The acquisition will be at $19.50 per share, marking a 33% premium on the share price as of December 20, 2024.

Despegar’s board of directors approved the acquisition and recommended that shareholders vote in favor of the proposed deal. This transaction will notably expand Prosus’s Latin American consumer base, with the company set to serve over 100 million customers across e-commerce, travel, and fintech sectors post-acquisition.

Prosus CEO Fabricio Bloisi stated that the acquisition highlighted the company’s strategy to build value by creating a high-quality ecosystem of complementary businesses. He praised Despegar’s profitability, market position, and experienced management team, stating that these factors made the company an ideal addition to Prosus’s Latin American operations. Bloisi plans to accelerate Despegar’s growth by leveraging Prosus’s extensive consumer touchpoints, operational expertise, and advanced AI capabilities.

Damián Scokin, Despegar’s CEO, echoed Bloisi’s enthusiasm, stating that the transaction represented significant value for Despegar stakeholders. He expressed confidence that Prosus would be the ideal partner to drive Despegar’s next growth phase. He also promised Despegar customers would benefit from a broader range of services, improved experiences, and more tailored solutions.

Founded in 1999 in Argentina, Despegar operates in over 19 Latin American markets. It handles over 9.5 million transactions annually, generates $5.3 billion in gross bookings and $706 million in revenue, and reports an EBITDA of $116 million based on its full-year 2023 results.

Prosus aims to leverage its extensive regional consumer ecosystem to drive user growth and engagement on Despegar while introducing new products and services to enhance the platform’s value over time. It also plans to create synergies between Despegar and its other regional businesses, such as iFood and Sympla.

The transaction is subject to customary closing conditions, including approval by Despegar shareholders and the receipt of necessary regulatory approvals. It is expected to close in Q2 2025, funded from existing cash resources.