Prosus, headquartered in Amsterdam, announced its strategic move to acquire Despegar, a prominent Latin American Online Travel Agency, at a share price of $19.50, culminating in a transaction worth approximately $1.7 billion. This acquisition, reflecting a 33% premium over Despegar’s recent closing share price, exemplifies Prosus’s strategy to enhance its presence in diverse sectors across Latin America. By integrating Despegar, Prosus seeks to leverage its operational expertise, extensive portfolio, and advanced AI capabilities to fuel Despegar’s growth trajectory, potentially enriching the travel and fintech sectors across the region.
Prosus has previously demonstrated interest in expanding its reach in Latin America, with ventures into food delivery and events platforms through acquisitions like iFood and Sympla. These past investments underscore its commitment to creating a robust consumer internet ecosystem in the region. However, the acquisition of Despegar marks a significant step into the travel industry, expanding Prosus’s portfolio and potentially increasing its influence across multiple sectors.
What Impact Will This Acquisition Have?
By acquiring Despegar, Prosus anticipates serving over 100 million customers in Latin America, extending its operations beyond e-commerce into travel and fintech. This acquisition not only strengthens its position in the market but also creates opportunities for synergies with existing regional businesses. Despegar, with its significant presence in 19 markets, is expected to benefit from Prosus’s resources and expertise, potentially enhancing customer experiences and expanding service offerings.
Will Regulatory Approvals Affect the Timeline?
Before finalizing the acquisition, approvals from Despegar’s shareholders and relevant regulatory bodies are necessary. The completion of this transaction is projected for the second quarter of 2025, provided these approvals are obtained. Prosus is optimistic about meeting these conditions, aiming to integrate Despegar seamlessly into its Latin American operations.
Despegar operates on dual business models: a B2C platform and a growing B2B segment providing white-label solutions to various partners. This dual approach, along with Despegar’s annual handling of over 9.5 million transactions, positions it as a significant player in the region’s travel sector. Prosus aims to harness these strengths to further enhance Despegar’s market position, providing customers with an expanded portfolio of services and benefits.
The acquisition aligns with Prosus’s objectives to invest in high-growth markets. By strengthening its presence in Latin America, the company looks forward to fostering innovation and building impactful businesses. Prosus remains focused on exploring opportunities in online classifieds, food delivery, payments, fintech, and education technology, further solidifying its role in the region.
The acquisition of Despegar by Prosus represents a strategic alignment of interests between two key players in the consumer internet space. With a focus on leveraging customer touchpoints and operational expertise, this acquisition could potentially enhance Despegar’s capabilities and market reach. For readers interested in the dynamics of international business expansions, this acquisition exemplifies how companies can integrate complementary businesses to create broader ecosystems.
