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Prosus set to acquire Despegar for $1.7 billion

Published 12/23/2024, 06:30 AM
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AMSTERDAM - Prosus (OTC:PROSF) NV (AEX:PRX), a global technology investor, has announced its plan to acquire Despegar (NYSE:NYSE:DESP), a leading online travel agency in Latin America, for $1.7 billion. The transaction, which will see Despegar shareholders receive $19.50 per share, represents a 33% premium over Despegar's closing share price on December 20, 2024, and a 34% premium over the company's 90-day volume-weighted average price.

The acquisition, approved by Despegar's board of directors, is expected to significantly expand Prosus's customer base in Latin America to more than 100 million across various sectors, including e-commerce, travel, and fintech. Despegar, which operates in over 19 Latin American markets, has developed a robust omnichannel B2C platform and a growing B2B segment offering white-label solutions.

Prosus's CEO, Fabricio Bloisi, emphasized the strategic fit of Despegar within their ecosystem, citing the travel agency's profitability, market position, and experienced management team. The acquisition is aimed at accelerating Despegar's growth by leveraging Prosus's operational expertise and AI capabilities.

Despegar's CEO, Damián Scokin, expressed confidence in the partnership with Prosus, highlighting the benefits for stakeholders, including expanded services and enhanced customer experiences. Despegar, founded in 1999 and listed on the New York Stock Exchange in 2017, has become a top travel brand in Latin America, handling over 9.5 million transactions annually.

Prosus intends to create synergies between Despegar and its other regional businesses, such as iFood, a leading food delivery platform, and Sympla, an events platform. The acquisition is part of Prosus's strategy to build value by integrating businesses into its ecosystem, which is expected to drive growth and innovation.

The transaction, funded from existing cash resources, is subject to customary closing conditions, including Despegar shareholder approval and regulatory approvals, with an expected close in Q2 2025. Morgan Stanley & Co (NYSE:MS). International PLC and Davis Polk are advising Prosus, while Goldman Sachs & Co (NYSE:GS). LLC and A&O Shearman are advising Despegar.

This article is based on a press release statement from Prosus NV.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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