• South American travel giant Despegar merges with Naspers’ Prosus to expand its global footprint.
• The USD 1.5B deal strengthens Despegar’s position in the competitive travel tech sector.
• This move signals a new era of innovation in the travel industry, blending tech and reach.

A Strategic Merger to Redefine Travel

Despegar, the South American e-commerce unicorn turned multinational travel agency, signed a merger agreement with Prosus, a subsidiary of South Africa’s Naspers. This USD 1.5 billion cash deal values Despegar at USD 19.50 per share. That is 34% over its 90-day volume weighted average trading price.

“Desde el día uno, la idea era vender. Hacer crecer la compañía y venderla. Era el mandato de esos tiempos. No existía el concepto de la empresa a largo plazo, al menos para nosotros.”

Roberto Hernán Souviron, Despegar Co-Founder

Founded in 1999 by five Argentine entrepreneurs, Despegar quickly rose to prominence as a leading online travel agency in Latin America. Initially, it offered seamless booking experiences for flights, hotels, and vacation packages. The company competes with global platforms like Expedia and Booking.com. And it stands out through its deep integration with Latin American markets and localized payment solutions.

Prosus, known for its stakes in global tech giants such as Tencent, sees this merger as a strategic move to capitalize on the booming travel tech sector. The deal combines Despegar’s robust Latin American presence with Prosus’s financial and operational expertise.

Reshaping the Global Travel Market

This merger underscores the rapid evolution of the travel industry as digital platforms become essential for global travelers. Despegar, which recorded USD 4.5 billion in gross bookings last year, will gain access to new markets. In particular, the South American company will gain access to Africa, Asia, and Europe, through Prosus’s extensive network.

For Latin America, this deal brings fresh opportunities to scale innovative travel solutions, fostering greater connectivity and economic growth. According to the World Travel & Tourism Council, Latin America’s travel market is poised to grow by 7.5% annually. Thus, this partnership positions Despegar to lead that charge.

A Connected World Through Travel Innovation

Looking ahead, this merger could redefine travel tech by bridging Latin America’s dynamic markets with emerging economies in Africa and beyond. With Prosus’s resources and Despegar’s expertise, the combined entity is well-positioned to introduce cutting-edge AI-driven personalization, dynamic pricing, and seamless payment solutions.

“Despegar adds significantly to our strong ecosystem in Latin America, a market with amazing growth potential. Our ambition is to ensure Despegar benefits from our wider ecosystem so that we can work together to deliver the best OTA travel solution in Latin America.”

Fabricio Bloisi, CEO Prosus Group

By enhancing operational efficiencies and expanding market reach, Despegar and Prosus aim to make global travel more accessible and sustainable. Despegar’s journey from a small Argentinian startup to a global travel tech powerhouse now paves the way for what could be a new era in interconnected, tech-enabled tourism.