International know-how firm Prosus is ready to amass Despegar, the main on-line journey company in Latin America, for $1.7 billion. The acquisition might 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 really useful 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 workforce, stating that these components made the corporate a perfect addition to Prosus’s Latin American operations. Bloisi plans to speed up Despegar’s progress by leveraging Prosus’s intensive 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 perfect associate to drive Despegar’s subsequent progress part. He additionally promised Despegar prospects would profit from a broader vary of companies, 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 stories an EBITDA of $116 million primarily based on its full-year 2023 outcomes.

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

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