Prosus to Acquire Latin American Travel Giant Despegar for $1.7 Billion
In a significant move that underscores the resurgence of the travel industry post-pandemic, tech conglomerate Prosus has announced its acquisition of Despegar, a leading online travel agency in Latin America, for $1.7 billion. The deal, approved by Despegar’s board, is expected to close in the second quarter of 2025, subject to shareholder approval.
This strategic acquisition aligns with Prosus’s ambition to expand its footprint in Latin America, complementing its existing investments in food delivery platform iFood and event ticketing service Sympla. The move is set to bolster Prosus’s customer base to an impressive 100 million across its three major regional properties.
Prosus, controlled by South African multinational Naspers, views this acquisition as a key step in building a high-quality ecosystem of complementary businesses in Latin America. The company sees Despegar as a profitable entity with a strong market position and experienced management team, presenting an opportunity to accelerate growth through its extensive customer touchpoints.
The acquisition offers a new lease on life for Despegar, which has faced growth challenges due to regional economic, social, and public health issues. The purchase price represents a 33% premium on Despegar’s recent market capitalization, although it remains below the company’s initial public trading value in 2017. Despegar anticipates that this deal will provide enhanced investment opportunities and expanded customer service offerings.
Founded in 1999, Despegar operates in 19 markets, offering both direct-to-consumer and white-label services. The company has remained competitive by developing innovative solutions such as Sofia, a conversational chatbot. Despegar processes approximately 9.5 million transactions annually, boasting significant gross bookings, revenue, and EBITDA.
This acquisition is part of a broader trend of investments in travel and tourism technology, signaling renewed confidence in the sector’s growth potential. As the travel industry continues to rebound from the impacts of the COVID-19 pandemic, this deal positions both Prosus and Despegar to capitalize on the recovering market.
The transaction awaits shareholder approval and is subject to customary closing conditions. Industry observers will be watching closely to see how this acquisition reshapes the competitive landscape of online travel services in Latin America.
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