Latin American online travel agency Despegar.com has confirmed its agreement to be acquired and taken private by tech conglomerate Prosus in a landmark deal valued at $1.7 billion. This acquisition represents a significant shift in the operational landscape of online travel services in Latin America, as Despegar.com navigates its future within Prosus’s robust corporate framework. The acquisition includes a cash consideration of $19.50 per share, which is a notable premium of 34% over Despegar.com's 90-day average trading price as of December 20.
Following the announcement, Despegar’s stock soared by 32% in midday trading, reflecting investor confidence in the transaction. In an official statement, Despegar's Chief Executive Damian Scokin articulated that this merger will empower the digital travel agency by providing access to Prosus’s immense resources, operational expertise, and advanced artificial intelligence capabilities.
Scokin declared the deal as a "significant step forward" in the company’s mission to enhance its market leadership and expand its footprint throughout Latin America. “This transaction will enable us to leverage Prosus' vast network and strong balance sheet, which will accelerate our growth and innovation strategies,” Scokin indicated.
He emphasized that clients can expect enhanced access to services, improved customer experiences, increased loyalty benefits, and more comprehensive solutions that cater to their individual needs. Prosus also commented on the acquisition, highlighting that Despegar stands out as a compelling addition to its Latin American ecosystem.
The partnership is set to benefit over 100 million customers across various sectors, including local e-commerce, travel, and fintech improvements. Despegar operates across 19 Latin American markets, utilizing a business-to-consumer website and mobile app, in conjunction with an AI assistant named Sofia.
Additionally, their business-to-business segment is rapidly expanding and now serves numerous clients, including banks, airlines, and retailers. The company demonstrated impressive performance metrics in 2023, reporting 9.1 million transactions, with year-over-year increases of 31% in both gross bookings and revenue—totaling $5.33 billion and $706 million, respectively.
Prosus’s CEO Fabricio Bloisi characterized Despegar as “highly profitable” and possessing “an attractive market position,” underscoring the sound strategic logic behind the acquisition. The acquisition transaction is projected to close in the second quarter of 2025, pending necessary regulatory approvals and ratification from Despegar's shareholders.
Post-acquisition, Despegar.com is anticipated to delist from all public markets, marking the end of its journey as a publicly traded entity..