Latin America’s largest online travel company, Despegar, agreed to be acquired by technology firm Prosus for $1.7 billion in cash.
In the announcement Monday, Despegar said it would “benefit from the significant resources, operational expertise and advanced AI capabilities provided by Prosus.” The deal is slated to close in the second quarter of 2025.
Prosus has an extensive portfolio of holdings, including investments in China’s Trip.com and Tencent. I has stakes in food delivery, payments and fintech, educational tech and classifieds, according to its website.
Despegar shareholders, which include minority investor Expedia Group, would receive $19.50 per share in cash, a 33% premium over its closing price of $14.65 on December 20. The deal is subject to shareholder approval.
Despegar’s largest shareholders entered into a voting agreement with Prosus to back the deal.
‘Signficant Step Forward’
Despegar CEO Damian Scokin said in a statement that the deal is a “significant step forward” in the company’s drive to expand its market leadership and to expand its offerings across Latin America.
“This transaction will enable us to rely on Prosus´ extensive network of companies and strong balance sheet, accelerating our growth and innovation strategies,” Scokin added.
When the deal closes, Despegar would be delisted from the New York Stock Exchange, and become a privately held company.
Founded in 1999 and headquartered in Argentina, Despegar features online and offline offerings, including brick and mortar travel agencies.
The company has grown in Latin America organically and by acquisition. For example, in 2019 Despegar acquired Viajes Falabella, which operates in Chile, Colombia, Peru and Argentina for $27 million. In 2020, Despegar bought Mexican travel agency Best Day for $136 million.
Several months ago, Despegar signed a new 10-year outsourcing agreement with Expedia, which gave Despegar new freedom to use its own hotel supply to expand beyond Latin America. The agreement was to be effective starting next month.
Scokin told Skift via an emailed statement that “the lodging contract with Expedia as supplier remains unchanged.”
Expedia Group was Despegar’s second largest shareholder as of April with a 13.3% stake, and has a seat on the Despegar board. Expedia first took a stake in Despegar in 2015. The largest shareholder, at 15.27%, was LCLA Daylight LP of Greenwich, Connecticut.
Scokin added: “We are facing a unique opportunity to continue advancing more quickly and effectively, and we are confident that together with Prosus we will be able to reach new milestones on our path.”
Note: This story has been updated to add additional statements from Despegar CEO Damian Scokin.
