After a merger deal was announced, shares of Despegar.com, Corp. (NYSE: DESP) surged 33.17% in pre-market trading to $19.51. Prosus, a well-known global technology business, will purchase it for cash for around $1.7 billion, according to DESP.
A Landmark Deal
The price per share that DESP stockholders will get is $19.50, a premium of 34% for the ninety days volume-weighted average before the last session. Its Board of Directors has already approved the deal and is pushing shareholders to support it. The agreement received unanimous approval from a special committee of independent directors.
Despegar To Promote Development and Innovation
Despegar will benefit from Prosus’s extensive resources and experience.Despegar has revolutionized the Latin American travel market for over 20 years. It is anticipated that Prosus’ advanced AI technology and operational experience would hasten the company’s development goal, enabling the company to provide a greater range of services and improved customer experiences. Through this merger, Despegar aims to expand its market share in Latin America with its customers anticipating enhanced connection, extensive travel alternatives, and better loyalty rewards.
Transaction Details and Timeline
Despegar will be merged with a fully owned subsidiary of Prosus, leaving it as the sole surviving company. In accordance with their conditions, the company’s Series A Preferred Shares will likewise be redeemed.
The merger is expected to conclude in the second quarter of 2025, pending regulatory and shareholder approvals as well as the usual closing requirements. DESP stock will delist from the New York Stock Exchange and become a privately held corporation after the completion.
Strengthening Prosus’ Latin American Portfolio
Prosus’ ecosystem in Latin America, a market with enormous development potential, is strengthened by this purchase. Despegar and Prosus together have the potential to forge a more powerful and competitive organization, which would be a major turning point in the development of the travel sector in Latin America.
