Latin America’s travel leader Despegar to be acquired by Prosus for $19.50/share in cash, boosting market presence and growth with Prosus’ expertise.
Despegar.com, Corp., Latin America’s leading travel technology company, announced that it has entered into a definitive merger agreement to be acquired by Prosus, a leading global technology company, for $19.50 per share in an all-cash transaction (the “Transaction”). This represents an enterprise value of approximately $1.7 billion for Despegar.
The transaction price represents a premium of approximately 34% over the volume-weighted average price of Despegar’s share for the 90 trading days ending on December 20, 2024.
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Despegar’s Board of Directors has approved the Agreement and resolved to recommend that Despegar shareholders vote in favor of its adoption and the approval of the merger contemplated thereby. This approval follows the unanimous recommendation of a transaction committee of the Board of Directors comprised solely of independent directors formed in connection with the transaction (the “Transaction Committee”).
Prosus has a proven track record of building leading technology businesses worldwide. Despegar will benefit from Prosus’s significant resources, operational expertise, and advanced AI capabilities.
The transaction underscores Despegar’s position as a key market player, highlighting its successful commercial execution, consistent leading innovation and ongoing focus on margin expansion. For more than twenty years Despegar has been a transformative force in the Latin American tourism industry. As part of the Prosus Group, Despegar is poised to accelerate its growth strategy. This strategic move not only enhances Despegar’s market presence but also strengthens its ability to innovate and compete.
Damian Scokin, Despegar’s CEO 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.
Fabricio Bloisi, CEO of Prosus Group 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.”
Transaction Details
Under the terms of the Agreement, a wholly owned subsidiary of Prosus will merge with Despegar, with Despegar continuing as the surviving entity, and each outstanding share of Despegar will be converted into the right to receive $19.50 per share in cash. Despegar’s outstanding Series A Preferred Shares will be cancelled and converted into the right to receive payment of the amount due in accordance with their terms.
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The transaction is currently expected to close in Q2 2025, subject to the approval of Despegar’s shareholders, the receipt of required regulatory clearances, and other customary closing conditions.
Certain shareholders of the Company, including the holder of Despegar’s Series A Preferred Shares, have entered into voting and support agreements with Prosus undertaking to vote in favor of the transaction.
The transaction is not subject to a financing condition. Upon completion of the transaction Despegar will become a privately-held company, its ordinary shares will be delisted from the New York Stock Exchange and it will no longer be listed on any public market.
Goldman Sachs & Co. LLC is serving as exclusive financial advisor to the Transaction Committee; Allen Overy Shearman Sterling LLP is serving as legal counsel to Despegar.
Morgan Stanley & Co. International PLC served as Prosus’ exclusive financial advisor on the transaction, with Davis Polk & Wardell LLP serving as legal advisor.
