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Key Points
- Prosus to acquire Despegar at a 33% premium as part of its strategy to expand its Latin America presence across e-commerce, travel, and fintech sectors.
- Despegar’s acquisition adds over 100 million users to Prosus’s network, enhancing synergies with iFood and Sympla.
- The transaction, which reflects Prosus' broader goal of expanding its investment portfolio, is expected to close by Q2 2025, funded through existing cash reserves.
Prosus N.V., the global Internet group led by South African billionaire Jacobus Petrus Bekker (Koos Bekker), has entered into a definitive agreement to acquire Despegar, Latin America’s largest online travel agency, in a transaction valued at $1.7 billion.
The deal advances Prosus’ Latin America expansion, aligning with its 2024 share buyback and growth strategy. Priced at $19.5 per share, it reflects a 33 percent premium to Despegar’s Dec. 20, 2024, closing price and 34 percent to its 90-day volume-weighted average price (VWAP).
Prosus expands with Despegar acquisition
The acquisition, recently announced is subject to regulatory conditions including shareholder approval with closing conditions and expectations set for the second quarter of 2025, with Prosus funding the purchase from existing cash reserves. Morgan Stanley & Co.
Prosus CEO Fabricio Bloisi highlighted Despegar’s profitability, market leadership, and strong management, expressing confidence the acquisition will drive growth through integration into Prosus’s e-commerce, fintech, and food platforms.
“This acquisition underscores our strategy to build value through complementary businesses. Despegar’s strong position and profitability make it a natural fit for our portfolio, and we are eager to leverage our operational expertise and AI capabilities to enhance its growth trajectory,” Bloisi said.
Despegar, founded in 1999 in Argentina, operates in 19 Latin American markets, processing 9.5 million transactions annually. In 2023, it reported $5.3 billion in gross bookings, $706 million in revenue, and $116 million EBITDA. Its omnichannel B2C and expanding B2B model cement its leadership in regional travel.
Prosus implements strategic portfolio expansion
Prosus N.V., founded in 1997 under the leadership of Koos Bekker, has grown into a global consumer Internet group and one of the world’s largest technology investors.
The group, a division of the renowned South African multinational conglomerate Naspers, which is also run by Koos Bekker, has a diverse international portfolio that includes investments in top fintech, social media, ed-tech, and food delivery system firms. Bekker’s 0.84-percent stake in Prosus is worth $845.8 million as of the time of writing.
Over the past year, Prosus has optimized its portfolio through share buybacks, viewing Despegar as key to boosting growth and engagement with iFood and Sympla, while reallocating capital to higher-growth areas.
