In a significant move to bolster its presence in the Latin American market, Dutch technology investor Prosus NV has announced its acquisition of Despegar.com, the region's largest online travel agency, for approximately $1.7 billion. This strategic acquisition, expected to close in the second quarter of 2025, will see Prosus paying $19.50 per share, representing a 33% premium over Despegar's closing share price on December 20, 2024, and a 34% premium over its 90-day volume weighted average price.

Despegar, which operates in 19 Latin American markets, is set to benefit from Prosus's extensive resources, operational expertise, and advanced AI capabilities. The acquisition is anticipated to enhance Despegar's market position and accelerate its growth strategy, leveraging Prosus's existing ecosystem, which includes investments in food delivery, fintech, and classifieds sectors.

The deal has been approved by Despegar's Board of Directors and is subject to shareholder and regulatory approvals. Upon completion, Despegar will be delisted from the New York Stock Exchange and become a privately held company. This move is expected to provide Despegar with the flexibility to pursue long-term strategic investments without the pressures of public market performance.

Prosus, majority-owned by South Africa's Naspers, has a proven track record of building leading technology businesses globally. The acquisition of Despegar aligns with Prosus's strategy to create a high-quality ecosystem of complementary businesses, aiming to serve over 100 million customers across e-commerce, travel, and fintech sectors in Latin America.

Despegar's CEO, Damian Scokin, expressed enthusiasm about the acquisition, highlighting the potential for enhanced customer experiences and expanded service offerings. Prosus's CEO, Fabricio Bloisi, emphasized the strategic value of the acquisition, noting the significant growth potential in the Latin American digital travel market.

This acquisition marks a pivotal moment for both companies, as they join forces to capitalize on the growing digital travel market in Latin America, driven by increasing internet penetration and middle-class growth in the region.