12:51 PM EST, 12/23/2024 (MT Newswires) -- Latin American online travel agency Despegar.com ( DESP ) said Monday that it agreed to be acquired and taken private by tech company Prosus in a deal valued at $1.7 billion.

The cash consideration of $19.50 per share represents a premium of 34% over Despegar.com's ( DESP ) 90-day average trading price through Dec. 20. Its stock soared 32% in midday trade.

The digital agency will benefit from Prosus's "significant resources, operational expertise and advanced (artificial intelligence) capabilities," the company wrote in a statement. The deal is a "significant step forward" in Despegar's mission to broaden its market leadership and expand across Latin America, according to Despegar Chief Executive Damian Scokin.

"This transaction will enable us to rely on Prosus' extensive network of companies and strong balance sheet, accelerating our growth and innovation strategies," he said. "Our customers will benefit from access to more services, enhanced customer experiences, increased loyalty benefits, and more comprehensive solutions tailored to their needs."

In a separate statement, Prosus said Despegar is a compelling addition to its Latin American ecosystem, which will be expanded to serve more than 100 million customers across local e-commerce, travel and fintech sectors.

Despegar operates in 19 Latin American markets through a business-to-consumer website and mobile app, an AI assistant Sofia, and a "rapidly expanding" white-label business-to-business segment that serves clients such as banks, airlines and retailers, according to Prosus.

In 2023, Despegar reported 9.1 million transactions, and year-over-year increases of 31% for both gross bookings and revenue, at $5.33 billion and $706 million, respectively. The company is "highly profitable" and has "an attractive market position," Prosus CEO Fabricio Bloisi said.

The transaction is expected to close in the second quarter of 2025, pending regulatory clearance and the approval of Despegar's shareholders. At that time, Despegar.com ( DESP ) will no longer be listed on any public market.

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