Prosus to Buy Latin American Online Travel Agency Despegar for $1.7 Billion -- Update

Dow Jones

23 Dec 2024

By Najat Kantouar

Tencent's largest shareholder, Prosus, plans to buy Latin American online travel agency Despegar for $1.7 billion as part of its expansion in the region.

The Amsterdam-listed investment group Prosus--which owns a roughly $114 billion stake in Chinese tech giant Tencent--agreed to acquire Despegar for $19.50 a share. This price marks a 33% premium to its closing share price on Friday, and a 34% premium to its 90-day volume weighted average price, it said Monday. The deal will be funded from existing cash.

Following the acquisition, Prosus aims to serve 100 million customers across local e-commerce, travel and fintech sectors. The transaction has been approved by the travel agency's board and is expected to be completed in the second quarter of next year, after regulatory approval.

Prosus plans to create synergies between Despegar and its other regional businesses, the company said. These include iFood, Latin America's leading food delivery platform with 60 million customers per year, and Sympla, a events platform.

Despegar was founded in Argentina in 1999 and became listed on the New York Stock Exchange in 2017. It handles over 9.5 million transactions annually. For its full-year 2023 results, the online travel agency generated $5.3 billion in gross bookings, $706 million in revenue, and delivered $116 million in earnings before interest, taxes, depreciation, and amortization.

Write to Najat Kantouar at najat.kantouar@wsj.com

(END) Dow Jones Newswires

December 23, 2024 08:17 ET (13:17 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

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These include iFood, Latin America's leading food delivery platform with 60 million customers per year, and S","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"DESP":"Despegar.com Corp.","IE00BGV7N243.SGD":"FSSA Global Emerging Markets Focus I Acc SGD","BK4107":"财产与意外伤害保险","AFG":"美国金融集团有限公司","BK4142":"酒店、度假村与豪华游轮","IE00BFMHRM44.USD":"NEUBERGER BERMAN GLOBAL EQUITY MEGATRENDS \"A\" (USD) ACC","BK4117":"多元化保险"},"translate_title":"Prosus将以17亿美元收购拉丁美洲在线旅行社Despegar——更新","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AFG":1,"DESP":0.9},"content_text":"By Najat Kantouar \n\n\n \n\n\n  Tencent's largest shareholder, Prosus, plans to buy Latin American online travel agency Despegar for $1.7 billion as part of its expansion in the region. \n\n\n  The Amsterdam-listed investment group Prosus--which owns a roughly $114 billion stake in Chinese tech giant Tencent--agreed to acquire Despegar for $19.50 a share. This price marks a 33% premium to its closing share price on Friday, and a 34% premium to its 90-day volume weighted average price, it said Monday. The deal will be funded from existing cash. \n\n\n  Following the acquisition, Prosus aims to serve 100 million customers across local e-commerce, travel and fintech sectors. The transaction has been approved by the travel agency's board and is expected to be completed in the second quarter of next year, after regulatory approval. \n\n\n  Prosus plans to create synergies between Despegar and its other regional businesses, the company said. These include iFood, Latin America's leading food delivery platform with 60 million customers per year, and Sympla, a events platform. \n\n\n  Despegar was founded in Argentina in 1999 and became listed on the New York Stock Exchange in 2017. It handles over 9.5 million transactions annually. 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