Despegar to be acquired by Prosus for $19.50 per share

Prosus announced that it has entered into a definitive agreement to acquire Despegar 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 VWAP. The proposed transaction was approved by Despegar’s board of directors, who recommended that Despegar shareholders vote in favor of the proposed transaction following the unanimous recommendation by a transaction committee. The company handles over 9.5M transactions annually, generating $5.3B in gross bookings, $706M in revenue, and delivering a reported EBITDA of $116M based on its full-year 2023 results. Through this acquisition, Prosus plans to create synergies between Despegar and its other regional businesses, such as iFood. 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.