Prosus Acquires Despegar for $1.7 Billion, Expanding its Latin American Footprint

Prosus, the technology conglomerate controlled by Naspers, is acquiring Despegar, a leading online travel agency in Latin America, for $1.7 billion, according to a statement released by Prosus today, as reported by TechCrunch. The deal, which has been approved by Despegar's board of directors, is expected to close in the second quarter of 2025.

This acquisition marks a significant investment in Latin America's travel sector, which is experiencing a strong rebound following the COVID-19 pandemic. Prosus aims to leverage Despegar's established market position to expand its operations and create greater economies of scale in the region.

"This acquisition is a clear demonstration of our strategy to build value by creating a high-quality ecosystem of complementary businesses," said Fabricio Bloisi, CEO of Prosus Group, in a statement. "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."

The deal, which will see Prosus pay $19.50 per share, represents a 33% premium on Despegar's market cap as of last Friday. However, it is still below the company's market cap on its first day of public trading in 2017.

Despegar's acquisition could provide a much-needed boost to the company, which has faced challenges in achieving sustained growth over the past decade amid economic, social, and public health uncertainties in Latin America.

The combined entity, following the acquisition, will have a customer base exceeding 100 million across three key areas: food delivery (iFood), entertainment ticketing (Sympla), and now online travel (Despegar). This move will strengthen Prosus's position as a leading consumer services conglomerate in Latin America.