Prosus to acquire Despegar for $1.7B or $19.50 per share - InvestingChannel

Prosus to acquire Despegar for $1.7B or $19.50 per share

Prosus announces that it has entered into a definitive agreement to acquire Despegar (DESP) a leading Latin American Online Travel Agency, for $19.50 per share, equating to a 33% premium to the closing share price as of December 20, and a 34% premium to Despegar’s 90-day volume weighted average price. “The proposed transaction was approved by Despegar’s board of directors, who recommended that Despegar shareholders vote in favour of the proposed transaction following the unanimous recommendation by a transaction committee. The transaction introduces a significant and compelling addition to Prosus’s Latin America ecosystem, which, post-transaction, will expand to serve over 100 million customers across local e-commerce, travel, and fintech sectors,” Prosus stated in a notice to the London Stock Exchange. Fabricio Bloisi, CEO of Prosus Group 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 has been entered into on terms and conditions customary for transaction of this nature, and is subject to the customary closing conditions, including approval by Despegar shareholders and the receipt of necessary regulatory approvals and is expected to close in Q2 2025. The purchase consideration will be funded from existing cash resources.

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