Prosus is set to acquire the online travel agency Despegar.com for a substantial sum of US$1.7 billion (approximately R32 billion). This strategic move aims to bolster Prosus’s online commerce footprint in the Latin American market.
Despegar’s board has given the green light to the acquisition offer of $19.50 per share, which represents a 33% premium over the closing price on December 20. This announcement was made by Prosus in a statement released on Monday.
Prosus CEO Fabricio Bloisi highlighted the strategic importance of this acquisition, stating;
This acquisition demonstrates our strategy to build value by creating high-quality ecosystems of complementary technology businesses. We will accelerate Despegar’s growth by leveraging the extensive customer touchpoints within our portfolio.
Prosus is a subsidiary of Naspers, which was an early investor in Tencent Holdings. Prosus is actively seeking to replicate its success with Tencent by identifying and investing in promising companies worldwide. Bloisi, who previously led Prosus’s Latin American iFood delivery service before becoming CEO in July, stands to earn a $100-million incentive if he can double the company’s value within four years.
Since Bloisi took over, Prosus has divested some of its investments, including a stake in the Indian online food delivery company Swiggy during its initial public offering and its holding in China’s Trip.com for approximately $1.5 billion. The acquisition of Despegar marks the first major purchase under Bloisi’s leadership, with more deals anticipated as he pursues rapid growth.
Despegar operates in 19 countries and manages over 9.5 million transactions annually. In its 2023 financial year, the company reported gross bookings totaling $5.3 billion.
The acquisition, expected to be finalized in the second quarter of 2025 pending regulatory approval, will enhance Prosus’s e-commerce portfolio in Latin America. Prosus already has a presence in the region with businesses such as the classified platform OLX, iFood, and the events platform Sympla.
Upon completion of the deal, Prosus will have approximately 100 million customers and over $500 million in e-commerce earnings before interest and tax in Latin America, as per a Prosus presentation. Prosus has intensified its efforts to allocate capital strategically, focusing on sectors like online food, classifieds, payments, and fintech, according to Prosus chief investment officer and president Ervin Tu.
Prosus, through Naspers, made a significant investment in Tencent in 2001, acquiring nearly half of the company for $34 million. Today, Prosus owns about a quarter of Tencent, which has a market value of around $480 billion. This investment in Tencent has significantly influenced Prosus’s stock price and created a disparity between the value of its stake in Tencent and the rest of its business operations.
