Prosus Set to Transform Latin American Travel With $1.7 Billion Takeover of Despegar

23 December, 2024, Amsterdam and Johannesburg: Prosus, a worldwide technology organization, today declares that it has entered into a conclusive agreement to acquire Despegar (NYSE: DESP), a premier Latin American Online Travel Agency (OTA), for $19.50 per share, representing a 33% increase over the closing share price as of 20 December 2024, and a 34% increase to Despegar’s 90-day VWAP (volume-weighted average price). The suggested deal received endorsement from Despegar’s board of directors, who advised that shareholders vote in favor of the proposed agreement following the unanimous suggestion provided by a transaction committee.

The agreement presents a substantial and attractive enhancement to Prosus’s Latin America ecosystem, which, post-transaction, will extend to serve over 100 million clients across local e-commerce, travel, and fintech domains.

Fabricio Bloisi, CEO of Prosus Group stated:

“This acquisition is a clear representation of our strategy to enhance value by constructing a premium ecosystem of complementary enterprises. Despegar is a very profitable organization, with a favorable market standing, and a skilled management team – making it a natural fit for our presence in Latin America. We will amplify Despegar’s growth by utilizing the extensive customer contact points within our portfolio, together with our operational expertise and advanced AI capabilities.”

Damián Scokin, CEO of Despegar remarked:

“This is an exhilarating advancement that provides a favorable outcome for Despegar stakeholders. The deal signifies notable value for our shareholders, and I firmly believe that Prosus is the right partner to propel our next growth phase. For our customers, this signifies access to an expanded range of services, improved experiences, enhanced loyalty benefits, and more comprehensive solutions tailored to their needs. Prosus boasts a proven history of developing leading technology enterprises globally, and their deep comprehension of the Latin American ecosystem uniquely situates them to propel our next growth chapter.”

Despegar functions in over 19 Latin American regions, catering to customers through two main business models: an omnichannel B2C platform that connects with users via the website, mobile app, and conversational channels driven by the company’s AI assistant, Sofia; and a rapidly developing B2B sector that provides white-label solutions to partners like banks, airlines, and retailers.

In the last two decades, Despegar has matured and evolved into a sector frontrunner with a verified and scalable business model. The organization manages over 9.5 million transactions per year, yielding $5.3 billion in gross bookings, $706 million in revenue, and reporting an EBITDA of $116 million based on its full-year 2023 outcomes.

Established in Argentina in 1999, the business scaled and extended throughout the region before making its debut on the New York Stock Exchange in 2017. Despegar has become the most recognized travel brand in Latin America, and its Decolar brand is the most well-known brand in its largest market, Brazil.

Prosus recognizes substantial potential in utilizing its extensive consumer ecosystem in the region to boost user growth and engagement on Despegar, while introducing new products and services to enhance the platform’s value proposition over time.

Through this acquisition, Prosus aims to create synergies between Despegar and its other regional ventures, such as iFood, Latin America’s leading food delivery platform with 60 million customers annually and Sympla, a notable events platform.

Fabricio Bloisi added:

“Latin America is a territory we understand and know thoroughly, with real GDP growth of 2-3% anticipated next year, along with promising medium to long-term opportunities. In tandem with that, online travel is significantly expanding globally, and the prospects within the Latin American region assure us that we can partner with Despegar to elevate the business to the next level. This investment will exemplify how we can create value by integrating businesses into our ecosystem, fostering growth, innovation, and lasting influence.”

The transaction has been arranged on terms and conditions standard for deals of this nature, and is subject to the customary closing conditions, including approval by Despegar shareholders and the acquisition of necessary regulatory endorsements. It is anticipated to conclude in Q2 2025. The purchase funding will come from existing cash resources.

Morgan Stanley & Co. International PLC is acting as the exclusive financial advisor to Prosus; Davis Polk is serving as legal counsel to Prosus. Goldman Sachs & Co. LLC is acting as the exclusive financial advisor to the transaction committee; A&O Shearman is serving as legal counsel to Despegar.

For further information, please connect with:

Eoin Ryan Head of Investor Relations Tel: +1 347 210 4305 Email: [email protected]

Nicola McGowan Chief Communications Officer Tel: +44 7563 257 245 Email: [email protected]

Sibusiso Tshabalala Head of Communications, South Africa Tel: +27 81 431 4855 Email: [email protected]