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Prosus to acquire Latin America’s Leading Online Travel Agency, Despegar, for US$1.7bn
Prosus N.V.
(Incorporated in the Netherlands)
(Legal Entity Identifier: 635400Z5LQ5F9OLVT688)
AEX and JSE Share Code: PRX ISIN: NL0013654783
(Prosus)
Prosus to acquire Latin America's Leading Online Travel Agency, Despegar, for US$1.7bn
Prosus, a global technology company, today announces that it has entered into a definitive
agreement to acquire Despegar (NYSE: DESP) a leading Latin American Online Travel Agency
(OTA), for $19.50 per share, equating to a 33% premium to the closing share price as of 20
December 2024, and a 34% premium to Despegar's 90-day VWAP (volume weighted average
price). The proposed transaction was approved by Despegar's board of directors, who
recommended that Despegar shareholders vote in favour of the proposed transaction following
the unanimous recommendation by a transaction committee.
The transaction introduces a significant and compelling addition to Prosus's Latin America
ecosystem, which, post-transaction, will expand to serve over 100 million customers across
local e-commerce, travel, and fintech sectors.
Fabricio Bloisi, CEO of Prosus Group said:
"This acquisition is a clear demonstration of our strategy to build value by creating a high-
quality ecosystem of complementary businesses. Despegar is a highly profitable company, with
an attractive market position, and an experienced management team – making it a natural
addition to our presence in Latin America. We will accelerate Despegar's growth by leveraging
the extensive customer touchpoints within our portfolio, along with our operational expertise
and advanced AI capabilities."
Damián Scokin, CEO of Despegar said:
"This is an exciting development that delivers a great outcome for Despegar stakeholders. The
transaction represents significant value for our stockholders, and I am convinced that Prosus is
the ideal partner to drive our next phase of growth. For our customers, this means access to
an expanded portfolio of services, better experiences, greater loyalty benefits and more
complete solutions tailored to their needs. Prosus has a proven track record of building leading
tech businesses across the world, and their deep understanding of the Latin American
ecosystem uniquely positions them to drive our next phase of growth."
Despegar operates in over 19 Latin American markets, serving customers through two primary
business models: an omnichannel B2C platform that connects with users via the web, mobile
app, and conversational channels powered by the company's AI assistant, Sofia; and a rapidly
expanding B2B segment that offers white-label solutions to partners such as banks, airlines,
and retailers.
Over the past two decades, Despegar has developed and grown into a sector leader with a
proven and scalable business model. The company handles over 9.5 million transactions
annually, generating $5.3 billion in gross bookings, $706 million in revenue, and delivering a
reported EBITDA of $116 million based on its full-year 2023 results.
Founded in Argentina in 1999, the business scaled and expanded throughout the region before
listing on the New York Stock Exchange in 2017. Despegar has become the most recognised
travel brand in Latin America and its Decolar brand is the most recognised brand in its largest
market, Brazil.
Prosus sees significant potential in leveraging its extensive consumer ecosystem in the region
to drive user growth and engagement on Despegar, while introducing new products and
services to enhance the platform's value proposition over time.
Through this acquisition, Prosus plans to create synergies between Despegar and its other
regional businesses, such as iFood, Latin America's leading food delivery platform with 60
million customers per year, and Sympla, a prominent events platform.
Fabricio Bloisi added:
"Latin America is a market we know and understand well, with real GDP growth of 2-3%
expected next year and promising medium to long-term prospects. Coupled with that, online
travel is expanding significantly around the world and the opportunities in the Latin America
region give us confidence that we can work with Despegar to take the business to the next
level. This investment will serve as a powerful example of how we can build value by
integrating businesses into our ecosystem, driving growth, innovation, and lasting impact."
The transaction has been entered into on terms and conditions customary for transaction of
this nature, and is subject to the customary closing conditions, including approval by Despegar
shareholders and the receipt of necessary regulatory approvals and is expected to close in Q2
2025. The purchase consideration will be funded from existing cash resources.
Morgan Stanley & Co. International PLC is serving as exclusive financial advisor to Prosus; Davis
Polk is serving as legal counsel to Prosus. Goldman Sachs & Co. LLC is serving as exclusive
financial advisor to the transaction committee; A&O Shearman is serving as legal counsel to
Despegar.
Amsterdam, the Netherlands
23 December 2024
JSE sponsor to Prosus
Investec Bank Limited
Enquiries
Eoin Ryan Tel: +1 347 210 4305
Head of Investor Relations
Email: eoin.ryan@prosus.com
Nicola McGowan Tel: +44 7563 257 245
Chief Communications Officer
Email: nicola.mcgowan@prosus.com
Sibusiso Tshabalala Tel: +27 81 431 4855
Head of Communications, South Africa
Email: sibusiso.tshabalala@naspers.com
About Prosus
Prosus is a global technology company, unlocking an AI-first world for our 2 billion customers. With investments in more than 100 companies across
the world, we are building local ecommerce champions in growth markets.
With leading positions in Food Delivery, Classifieds and Fintech, Prosus has created its own unique technology ecosystem, driving innovation,
knowledge sharing and growth across our portfolio.
Through the Prosus Ventures team, the group invests in new technology growth opportunities within AI, social and ecommerce platforms, fintech,
B2B software, logistics, health, blockchain, agriculture and more.
The team actively backs exceptional entrepreneurs who are using technology to improve people's everyday lives.
To find out more, please visit www.prosus.com.
Date: 23-12-2024 01:30:00
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