Despegar Acquired by Prosus in $1.7 Billion Deal
In a major growth in the global travel industry, Despegar, a leading Latin American online travel agency, has been acquired by prosus, a global technology investor, in an all-cash transaction valued at approximately $1.7 billion. The deal, announced December 22, 2024, sees Prosus paying $19.50 per share for Despegar,representing a notable premium for shareholders.
This acquisition marks a significant win for Prosus, expanding its footprint in the rapidly growing online travel sector.For Despegar, the deal promises enhanced innovation and growth opportunities leveraging Prosus’s global resources and expertise. The $19.50 per share price represents a premium of approximately 34% over Despegar’s 90-day volume-weighted average trading price, ending December 20, 2024, and approximately a 9% premium above its 52-week high.
Despegar, originally founded by a group of friends – Roberto “Roby” Souviron, Martín Rastellino, christian Vilate, Mariano Fiori, and Alejandro Tamer – in the late 1990s, has evolved from a small startup into a major player in the Latin American travel market. The company has navigated economic challenges, including the pandemic, and now stands poised for further expansion under Prosus’s ownership.
“The transaction price represents a premium of approximately 34% over the 90-day volume-weighted average of Despegar’s unaffected share price for the 3 months ending December 20, 2024 and approximately a premium of 9% above the maximum unaffected share price of Despegar in 52 weeks of 18.75,”
While the details of future operations remain to be seen, one source close to the company indicated that daily operations are expected to continue as usual. “The recent acquisition does not imply any change to our daily operations or the way we currently work,” the source stated.
This acquisition highlights the ongoing consolidation in the global travel industry and the significant investment interest in Latin American technology companies. The deal’s impact on the broader travel landscape and its implications for U.S. travelers booking trips to Latin America remain to be seen, but the acquisition certainly signals a new chapter for Despegar and the future of online travel in the region.
Despegar, Latin American Travel Giant, Goes Private in Buyout Deal
Despegar.com Corp., a leading online travel agency in Latin america, is being taken private in a deal with Protus, a private equity firm. The news sent Despegar’s stock soaring over 33 percent in pre-market trading before the company announced it would delist from the New York Stock Exchange (NYSE), where it traded under the ticker symbol DESP as 2017.
“Once the transaction is approved, the company will cease trading. The transaction is not subject to any financing conditions. Once the transaction is completed,Despegar will become a private company,its common shares will cease to be listed on the New York Stock Exchange and it will cease to be listed on any public market,” the company stated in a press release.
Prior to the acquisition, major shareholders included Catterton Management Company, Neuberger Berman Group, No Street GP, and the investment giant BlackRock. while the founders retain minority stakes and board seats, they haven’t been actively involved in the company’s day-to-day operations for several years. One founder, for instance, currently serves as an undersecretary in the Argentine government under Minister Federico Sturzenegger.
Sources close to Protus describe the firm as a fund “that promotes the growth of its companies” and emphasize its commitment to enhancing Despegar’s market presence, innovation, and competitiveness. The fund’s strategy focuses on…
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This acquisition highlights the ongoing consolidation within the global travel industry and the increasing interest of private equity firms in established players in the Latin American market.The deal’s impact on consumers and the competitive landscape remains to be seen.
Despegar Takes Flight: prosus Acquisition fuels Latin american Travel Giant
Despegar, a leading online travel agency in Latin America, has announced a significant acquisition by Prosus, a global technology investor. This strategic move promises to propel Despegar’s growth trajectory and solidify its position as a technological leader in the region’s tourism sector.
The acquisition marks a pivotal moment for despegar, offering access to expanded resources and expertise. Damian Scokin, CEO of Despegar, emphasized the transformative potential of this partnership. “The recent acquisition does not imply any change to our daily operations or the way we currently work,” Scokin clarified in a statement to infobae. “What does mark a turning point is our new perspective in terms of development and speed of growth.”
Prosus, known for its “growth mindset” and significant investments in global technology companies, including those in food delivery, classifieds, and fintech, brings a wealth of resources to the table. Scokin highlighted the strategic advantages: “Being part of Prosus opens up a range of opportunities for us to advance professionally, explore new markets and have a greater capacity for investment in technology and capital. This alliance strengthens our ability to expand mergers and acquisitions (M&A) opportunities, which will further accelerate our expansion process.”
The acquisition is expected to substantially impact Despegar’s ability to innovate and expand its services. The company’s independent management structure will remain intact, ensuring continuity in its operations while leveraging Prosus’s extensive network and resources. This strategic partnership positions Despegar for continued leadership in the rapidly evolving Latin american travel market, mirroring the success of similar tech-driven travel companies in the U.S. market.
Scokin concluded, “This is a key moment for the future of Despegar. As a team,we have the possibility of leading new chapters in our history of growth and expansion,further consolidating our position as leaders in the technology sector applied to tourism in Latin America.”
Despegar Soars with Prosus partnership: A New Era for Latin American Travel
In a move that promises to reshape the Latin American travel landscape, Despegar, a leading online travel agency (OTA), has announced a strategic partnership with Prosus, a global technology investor. This collaboration positions Despegar for significant growth, leveraging Prosus’s extensive resources and expertise to solidify its dominance in the region and expand its global reach.
Despegar’s CEO, Damian Scokin, expressed his enthusiasm about the partnership, stating, “It is important to highlight that, although we continue to be an independent company, we now belong to an international group with vast experience in technology and emerging markets, which will allow us to take advantage of the best practices and resources to continue growing. With this union,we take a firm step to consolidate ourselves as leaders in the travel tech sector in our region,while continuing to shape the future of the industry in the global context. being part of Prosus puts us on a platform that will allow us to accelerate our growth both organically and inorganically. We are faced with a unique chance to continue advancing more quickly and effectively, and we are confident that together we will be able to reach new milestones on our path.”
The potential for growth in the Latin American travel market is undeniable, and this partnership directly addresses that opportunity.Prosus CEO,Fabrizio Bloisi,highlighted this potential,adding,“Despegar adds significantly to our strong ecosystem in Latin America,a market with incredible growth potential.Today’s announcement is about opportunity and growth – only Despegar is a triumphant business with great fundamentals and a motivated management team; Together, Despegar and Prosus will make it even stronger. Our ambition is to ensure that Despegar benefits from our extensive ecosystem so that we can work together to offer the best OTA travel solution in Latin America.”
This strategic alliance is expected to benefit not only Despegar but also the broader travel industry in Latin America. By combining Despegar’s regional expertise with Prosus’s global resources,the partnership promises to deliver innovative travel solutions and enhance the overall customer experience. The impact could be felt across the U.S. as well, possibly leading to increased travel options and partnerships between U.S.-based travel companies and Despegar.
The partnership underscores the growing importance of the Latin American travel market and the potential for significant returns on investment in the region. This development is likely to attract further attention from global tech investors and further fuel innovation within the Latin American travel sector.
