Netherlands-based expertise funding firm Prosus is buying Latin America-based on-line journey company Despegar for $1.7 billion in an all-cash transaction.
Prosus, which is a part of Naspers Group, operates in a variety of segments together with fintech and funds and has a “confirmed monitor report of constructing main expertise companies internationally,” a press release mentioned.
Prosus mentioned with this transaction it’s going to serve greater than 100 million clients in Latin America throughout journey, e-commerce and fintech and that it plans to create alternatives between Despegar and its different enterprise within the area, such because the iFood meals supply platform and Sympia, an occasions platform.
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Phrases of the deal, which is anticipated to shut within the second quarter of 2025, embody a subsidiary of Prosus merging with Despegar. Upon approval from its shareholders, which embody Expedia Group, Despegar will turn out to be a personal firm and be delisted from the New York Inventory Trade.
The assertion went on to say that Despegar would “profit from the numerous sources, operational experience and superior AI capabilities supplied by Prosus.”
“As a part of the Prosus Group, Despegar is poised to speed up its progress technique. This strategic transfer not solely enhances Despegar’s market presence but in addition strengthens its potential to innovate and compete,” the assertion mentioned.
“This transaction will allow us to depend on Prosus´in depth community of firms and robust steadiness sheet, accelerating our progress and innovation methods,” mentioned Damian Scokin, CEO of Despegar. “The transaction represents vital worth for Despegar stockholders and is a testomony to the dedication and onerous work of our crew and an thrilling milestone for Despegar. Our clients will profit from entry to extra providers, enhanced buyer experiences, elevated loyalty advantages, and extra complete options tailor-made to their wants.”
“Despegar provides considerably to our robust ecosystem in Latin America, a market with superb progress potential. Immediately’s announcement is about alternative and progress — alone Despegar is a profitable enterprise with nice fundamentals and a motivated administration crew; collectively, each Despegar and Prosus will make it even stronger. Our ambition is to make sure Despegar advantages from our wider ecosystem in order that we will work collectively to ship the very best OTA journey answer in Latin America,” mentioned Fabricio Bloisi, CEO of Prosus Group.
Till lately, Prosus held a stake in Journey.com however exited it in September for $743 million in accordance stories.
Despegar was based in 1999 and operates in 19 markets throughout Latin America. In early 2015, Expedia invested $270 million to amass a minority stake in Decolar and Despegar. The pair even have a lately renewed partnership which permits Despegar to supply its personal instantly sourced motels exterior its Latin America base.
Despegar has made a variety of transactions lately together with funds platform Koin and Greatest Day in 2020 in addition to trip rental expertise specialist Stays and Viajanet in 2022.
It generated $5.3 billion in gross bookings in 2023 and income of $706 million.
