$Despegar.com (DESP.US)$ shares are surging 31% on Monday after the company disclosed a deal to be acquired by Prosus for $19.50 per share in an all-cash transaction.
The transaction price reflects a 34% premium over Despegar's 90-day volume-weighted average share price as of December 20, 2024.
Despegar's Board of Directors has approved the merger agreement and recommended shareholder approval following the unanimous endorsement of a Transaction Committee composed of independent directors.
The deal values Despegar at approximately $1.7 billion in enterprise value.
Despegar will gain access to Prosus' extensive resources, operational expertise, and advanced AI capabilities.
As per the deal, a wholly owned subsidiary of Prosus will merge with Despegar, with Despegar remaining as the surviving entity.
Each outstanding share of Despegar will be converted into the right to receive $19.50 in cash, while the company's Series A Preferred Shares will be canceled and converted into payments as specified by their terms.
The transaction is anticipated to close in the second quarter of 2025, pending shareholder approval, regulatory clearances, and other customary closing conditions.
Following the transaction's completion, Despegar will transition to a privately held company. Its ordinary shares will be delisted from the New York Stock Exchange and will no longer trade on any public market.
Damian Scokin, Despegar's CEO said, "Our customers will benefit from access to more services, enhanced customer experiences, increased loyalty benefits, and more comprehensive solutions tailored to their needs. Together we are setting the stage for a new era of travel marked by greater connectivity, innovation and value."
Fabricio Bloisi, CEO of Prosus Group, added, "Despegar adds significantly to our strong ecosystem in Latin America, a market with amazing growth potential. Today's announcement is about opportunity and growth – alone Despegar is a successful business with great fundamentals and a motivated management team; together, both Despegar and Prosus will make it even stronger."
