Prosus has signed a deal to buy Latin American online travel agency Despegar for R31bn, marking the first major transaction under Naspers and Prosus CEO Fabricio Bloisi. The move opens up the group’s business to more than 100-million customers in the region.
On Monday, Naspers’ Amsterdam-listed unit said it had entered into a definitive agreement to acquire Despegar for $19.50 a share, translating to $1.7bn (R31.34bn). The offer price equates to a 33% premium to the New York-listed company’s closing share price as of December 20, and a 34% premium to its 90-day volume weighted average price.
Founded in Argentina in 1999, Despegar has expanded throughout the region, listing on the New York Stock Exchange in 2017.
The company operates in over 19 Latin American markets, serving customers through two main business models. The first is an omnichannel business to customer (B2C) platform that connects with users via the web, a mobile app and conversational channels powered by the company’s AI assistant, Sofia. The second is a “rapidly expanding” business to business (B2B) segment that offers white-label solutions to partners such as banks, airlines and retailers.
According to Prosus, this transaction introduces a “significant and compelling” addition to its Latin America ecosystem, which, post-transaction, will expand to serve more than 100-million customers across local e-commerce, travel and fintech sectors.
The proposed transaction, to be funded from the group’s more than $19bn war chest, has been approved by Despegar’s board of directors, who recommended shareholders vote in favour of the deal.
This follows unanimous recommendation by a committee that had been tasked with evaluating the offer.
Bloisi said: “This acquisition is a clear demonstration of our strategy to build value by creating a high-quality ecosystem of complementary businesses. Despegar is a highly profitable company, with an attractive market position and an experienced management team — making it a natural addition to our presence in Latin America.
“We will accelerate Despegar’s growth by leveraging the extensive customer touchpoints within our portfolio, along with our operational expertise and advanced AI capabilities.”
The transaction is subject to customary closing conditions, including receipt of necessary regulatory approvals and is expected to close in the second quarter of 2025.
Investment banking giant Morgan Stanley is serving as exclusive financial adviser to Prosus, while Davis Polk is legal counsel. Goldman Sachs is the financial adviser to the transaction committee, with A&O Shearman being Despegar’s legal counsel.
Despegar has grown to become a sector leader over the past two decades, with a proven and scalable business model. It is seen as “the most recognised travel brand” in Latin America, while its Decolar brand is the most recognised brand in Brazil, its largest market.
Prosus, under Brazilian entrepreneur Bloisi, sees significant potential in leveraging the soon-to-be acquired company’s extensive consumer ecosystem in the region to drive user growth and engagement on Despegar, while introducing new products and services to enhance the platform’s value proposition over time.
The company handles more than 9.5-million transactions annually, generating $5.3bn in gross bookings and $706m in revenue. It reported earnings before interest, tax, depreciation and amortisation (ebitda) of $116m for the 2023 financial year.
Through this acquisition, Prosus plans to “create synergies” between Despegar and other regional businesses in its portfolio, such as iFood, Latin America’s leading food delivery platform with 60-million customers a year, and Sympla, a prominent events platform.
Bloisi was previously the CEO of iFood, which he acquired in 2013 when it was a 20-person start-up, and has since grown it — rapidly and profitably — to become Brazil’s leading food delivery company.
Prosus took full control of iFood for €1.5bn (R28.8bn) in 2022.
Despegar adds to a busy year of deals for the group.
Earlier in the year the group sold its stake in Trip.com for $1.5bn, while also offloading Takealot subsidiary Superbalist.
Prosus also signed an agreement to sell Tazz, a Romanian food delivery company owned byeMAG, to Wolt.
Most recently, in November, Indian delivery platform Swiggy made its stock market debut, a move that more than doubled the value of Naspers’ and Prosus’ stake in the business.
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