World Stock Watch

Prosus NV Makes Bold Move into Latin America with $1.7 Billion Acquisition

Expanding Services Across the Region

In a significant move to strengthen its presence in Latin America, Dutch technology investor Prosus NV has announced its acquisition of online travel agency Despegar.com Corp for approximately $1.7 billion in cash. This strategic purchase will enable Prosus to expand its services across the region, capitalizing on the growing demand for online travel bookings.

A Premium Offer

Prosus, majority-owned by South Africa’s Naspers, has offered $19.50 per Despegar share, a 33% premium over the stock’s closing price on Friday. This attractive offer has already sent Despegar.com’s shares soaring by 32% in premarket trading.

Unlocking Synergies

By acquiring Despegar, Prosus aims to create synergies between the online travel agency and its other regional businesses, including food delivery platform iFood and events platform Sympla. This integration will enable Prosus to leverage Despegar’s extensive network, operating in over 19 Latin American markets.

E-commerce Ambitions

As one of Amsterdam-listed Prosus’ primary areas of investment, e-commerce is set to play a significant role in the company’s growth strategy. Its diverse portfolio already includes notable brands such as food delivery firm Delivery Hero, online marketplaces like OLX, educational software firms like SkillSoft and Stack Overflow, and payments companies like India-focused PayU.

Despegar’s Rich History

Founded in Argentina in 1999, Despegar has established itself as one of Latin America’s largest online tourism platforms. Despite facing challenges from high inflation in Argentina and currency depreciation against the U.S. dollar in key markets like Brazil and Mexico, Despegar remains a valuable asset in the region.

Deal Timeline

The acquisition is expected to close in the second quarter of 2025, marking a significant milestone in Prosus’ expansion into Latin America. With this deal, Prosus is poised to become a major player in the region’s e-commerce landscape.