British Virgin Islands / South America: Latin American online travel service company Despegar has entered into a definitive merger agreement to be acquired by global technology firm Prosus, with the deal valuing Despegar at $1.7 billion.
Despegar shareholders will receive $19.50 in an all-cash transaction, which represents a premium of approximately 34 per cent over the volume weighted average price for the 90 trading days leading up to 20 December 2024.
In a press release, the company said that it would “benefit from the significant resources, operational expertise and advanced AI capabilities provided by Prosus”, allowing it to accelerate its growth strategy and strengthen its ability to innovate and compete.
Despegar CEO Damián Scokin said: “We are thrilled about joining the Prosus Group as it represents a significant step forward in our mission to broaden our market leadership, and expand our services 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.
“The transaction represents significant value for Despegar stockholders and is a testament to the commitment and hard work of our team and an exciting milestone for Despegar. Our customers will benefit from access to more services, enhanced customer experiences, increased loyalty benefits, and more comprehensive solutions tailored to their needs.
“Together we are setting the stage for a new era of travel marked by greater connectivity, innovation and value,” he added.
Prosus Group CEO Fabricio Bloisi said: “Despegar adds significantly to our strong ecosystem in Latin America, a market with amazing growth potential. Today’s announcement is about opportunity and growth – alone Despegar is a successful business with great fundamentals and a motivated management team; together, both Despegar and Prosus will make it even stronger.”
“Our ambition is to ensure Despegar benefits from our wider ecosystem so that we can work together to deliver the best OTA travel solution in Latin America,” he added.
Operating in 20 Latin American countries under the brands Despegar and Decolar [meaning ‘to take off’ in Spanish and Portuguese], the group offers products ranging from accommodations to airlines, car rental agencies and destination services suppliers. To date, it has raised a reported $331 million in funding across seven rounds.
In recent years, Despegar has expanded its presence in the vacation rental space by purchasing a stake in SaaS business Stays.net for approximately $3.1 million and buying online travel agency ViajaNet for approximately $15 million, as well as growing its supply in markets such as Brazil and Mexico.
The transaction is expected to close in Q2 2025, subject to the approval of Despegar’s shareholders. As a result, Despegar will transition to becoming a privately-held company and its ordinary shares will be delisted from the New York Stock Exchange.
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Publish date : 2024-12-26 21:33:00
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