Prosus is acquiring online travel agency Despegar.com for US$1.7-billion (R32-billion) as the Dutch technology investor seeks to expand its online commerce presence in Latin America.
Despegar’s board approved the offer of $19.50/share, a 33% premium to the closing price on 20 December, Prosus said in a statement on Monday.
“This acquisition demonstrates our strategy to build value by creating high-quality ecosystems of complementary technology businesses,” Prosus CEO Fabricio Bloisi said. “We will accelerate Despegar’s growth by leveraging the extensive customer touchpoints within our portfolio.”
Prosus parent Naspers was an early investor in Tencent Holdings, and Prosus is now scouring the globe for companies in an effort to replicate its success with the Chinese internet firm. Bloisi, who prior to taking the helm at Prosus in July ran its Latin American iFood delivery service, stands to earn a $100-million moonshot pay package if he can double the company’s value in four years.
The group has sold off some investments since Bloisi took over, including a stake in Indian online food delivery firm Swiggy during its initial public offering and its holding in China’s Trip.com for about $1.5-billion. This is its first big acquisition under Bloisi, although more deals are expected as he seeks rapid growth.
Despegar operates in 19 countries and handles over 9.5 million transactions a year. The company did $5.3-billion in gross bookings in its 2023 financial year.
100 million customers
The deal, which is expected to close during the second quarter of 2025 pending regulatory approval, will add to Prosus’s e-commerce portfolio in Latin America, where it also has a classified business OLX, iFood and events platform Sympla.
Upon completion, the group will have about 100 million customers and over $500-million in e-commerce earnings before interest and tax in Latin America, according to a Prosus presentation.
Read: Naspers plans more IPOs after Swiggy success
Prosus has redoubled its efforts to deploy the company’s capital, focusing on sectors including online food, classifieds, payments and fintech, Prosus chief investment officer and president Ervin Tu said last month.
Prosus, through Naspers, made a blockbuster investment in Tencent in 2001, when it paid $34-million for nearly half of the company. Today, it owns about a quarter of the firm, which has a market value of about $480-billion. The group’s investment in the Chinese tech giant has distorted Prosus’s stock price and created a gap between the value of the stake and the rest of the group’s businesses. — (c) 2024 Bloomberg LP
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