Netherlands-based technology investment company Prosus is acquiring Latin America-based online travel agency Despegar for $1.7 billion in an all-cash transaction.
Prosus, which is part of Naspers Group, operates in a number of segments including fintech and payments and has a "proven track record of building leading technology businesses across the world," a statement said.
Prosus said with this transaction it will serve more than 100 million customers in Latin America across travel, e-commerce and fintech and that it plans to create opportunities between Despegar and its other business in the region, such as the iFood food delivery platform and Sympia, an events platform.
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Terms of the deal, which is expected to close in the second quarter of 2025, include a subsidiary of Prosus merging with Despegar. Upon approval from its shareholders, which include Expedia Group, Despegar will become a private company and be delisted from the New York Stock Exchange.
The statement went on to say that Despegar would “benefit from the significant resources, operational expertise and advanced AI capabilities provided by Prosus.”
“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,” the statement said.
“This transaction will enable us to rely on Prosus´extensive network of companies and strong balance sheet, accelerating our growth and innovation strategies,” said Damian Scokin, CEO of Despegar. “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.”
“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,” said Fabricio Bloisi, CEO of Prosus Group.
Until recently, Prosus held a stake in Trip.com but exited it in September for $743 million according reports.
Despegar was founded in 1999 and operates in 19 markets across Latin America. In early 2015, Expedia invested $270 million to acquire a minority stake in Decolar and Despegar. The pair also have a recently renewed partnership which enables Despegar to offer its own directly sourced hotels outside its Latin America base.
Despegar has made a number of transactions in recent years including payments platform Koin and Best Day in 2020 as well as vacation rental technology specialist Stays and Viajanet in 2022.
It generated $5.3 billion in gross bookings in 2023 and revenue of $706 million.