Prosus Acquires Despegar for $1.7 Billion, Expanding its Latin…

Team S · 2024-12-24T07:19:22.000Z

Prosus, the tech conglomerate controlled by Naspers, has announced its acquisition of Despegar, a leading online travel agency in Latin America, for $1.7 billion. This strategic move aims to bolster Prosus's presence in the region's growing travel sector. Deal value: $1.7 billion, with Prosus paying $19.50 per share, a 33% premium on Despegar's market cap. Timing: The deal is expected to close in Q2 of 2025, pending shareholder approval. Market impact: This acquisition underscores the ongoing rebound in the travel sector post-Covid-19 pandemic. Strategic fit: Prosus plans to leverage Despegar to capitalize on Latin America's expected 2-3% GDP growth next year. Ecosystem expansion: The deal will bring Prosus's total customer base in Latin America to 100 million across its properties, including iFood and Sympla. Despegar's profile: Founded in 1999, Despegar operates in 19 markets, offering both direct-to-consumer and white-label travel services. Financial performance: Despegar reported 9.5 million annual transactions, $5.3 billion in gross bookings, $706 million in revenue, and $116 million in EBITDA for 2023. This acquisition marks a significant development in Latin America's travel technology landscape, reflecting the broader trend of increased investment in the sector. It provides Despegar with potential for growth and expanded services, while strengthening Prosus's position in the region's digital economy. https://techcrunch.com/2024/12/23/prosus-buys-despegar-for-1-7b-taking-a-bite-out-of-latin-americas-travel-sector/

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Prosus Acquires Despegar for $1.7 Billion, Expanding its Latin… | Newnex