Prosus acquires Despegar to expand Latin American presence

Published 15/05/2025, 15:42
Prosus acquires Despegar to expand Latin American presence

NEW YORK - Prosus, a global technology company, has completed its acquisition of Despegar, the leading online travel agency in Latin America. The purchase was finalized at $19.50 per share, valuing the company at approximately $1.63 billion, following approval from Despegar’s board and shareholders, as well as the necessary regulatory clearances. According to InvestingPro data, Despegar has demonstrated strong performance with a 57.51% return over the past year and impressive gross profit margins of 73.14%.

This acquisition is a strategic move for Prosus to bolster and diversify its digital lifestyle ecosystem in Latin America, which currently serves over 100 million customers in sectors including food delivery, classifieds, travel, and fintech. Despegar’s robust revenue growth of 9.63% and GREAT financial health score, as reported by InvestingPro, make it an attractive addition to Prosus’s portfolio.

Fabricio Bloisi, CEO of Prosus Group, emphasized the significance of the acquisition, stating that it accelerates their vision to build dynamic lifestyle ecommerce ecosystems not only in Latin America but also in India and Europe. Bloisi highlighted the potential for synergies between Despegar and existing Prosus businesses such as iFood, Sympla, and OLX Brazil, aiming to enhance customer convenience and open new revenue avenues.

Damián Scokin, CEO of Despegar, expressed optimism about the partnership with Prosus, pointing to benefits such as increased scale and advanced AI expertise to spur growth and innovation in the travel industry. Scokin also noted Despegar’s contribution to strengthening Prosus’s standing as a premier lifestyle ecosystem brand in Latin America.

Prosus is known for its investments in more than 100 companies worldwide, focusing on local ecommerce champions in growth markets. The company has a significant presence in food delivery, classifieds, and fintech, and through Prosus Ventures, it also invests in emerging technology sectors.

Despegar has been a transformative force in Latin America’s tourism industry for over two decades, with a portfolio that includes various travel brands. The company operates in 20 countries in the region and is listed on the New York Stock Exchange.

The information for this article is based on a press release statement. For deeper insights into Despegar’s financial performance and future prospects, including 12 additional exclusive ProTips and comprehensive valuation metrics, visit InvestingPro to access the detailed Pro Research Report, available for over 1,400 top US stocks.

In other recent news, Despegar.com reported fourth-quarter earnings that fell short of analyst expectations, with adjusted earnings per share at $0.27 compared to the projected $0.39. However, the company’s revenue exceeded estimates, rising 8.7% year-over-year to $221.4 million, surpassing the anticipated $212.4 million. Despegar’s gross bookings saw a 1% decline year-over-year to $1.5 billion due to foreign exchange challenges, but on a currency-neutral basis, bookings increased by 38% year-over-year. The company’s adjusted EBITDA grew by 18% year-over-year to $51.5 million, with the margin expanding to 23.3%, driven by revenue growth and operational efficiencies. Despegar’s full-year revenue for 2024 increased by 10% to $774.1 million, while adjusted EBITDA surged by 52% to $175.2 million. In merger news, Despegar is in the process of being acquired by Prosus for $19.50 per share in cash, with the transaction expected to close in the second quarter of 2025. CEO Damian Scokin emphasized the company’s strong performance and highlighted initiatives like the launch of the AI travel assistant Sofia.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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