Despegar Completes Acquisition of 100% of Brazilian Online Travel Agency Viajanet

Rhea-AI Summary

Despegar.com (NYSE: DESP) has completed its acquisition of 100% of TVLX Viagens e Turismo S.A (Viajanet), a leading online travel agency in Brazil, for approximately US$15.5 million. Payment breakdown includes 17% upon closing, with further payments scheduled for July 2022 (43%), June 2024 (20%), and June 2025 (20%), subject to adjustments. This acquisition aims to strengthen Despegar's position in the Latin American online travel market and enhance service offerings for over 29 million customers.

Positive

• Acquisition of Viajanet enhances Despegar's market position in Brazil.
• Increased customer base with the integration of Viajanet's services.

Negative

• Total consideration of US$15.5 million reflects a significant investment burden.
• Future payments may strain cash flow depending on post-closing adjustments.

BRITISH VIRGIN ISLANDS--(BUSINESS WIRE)-- Despegar.com, Corp. (NYSE: DESP) (“Despegar”), the leading online travel company in Latin America, today announced that it has completed the previously announced (May 6, 2022 - link) acquisition of 100% of TVLX Viagens e Turismo S.A (“Viajanet”), one of Brazil’s leading online travel agencies, for a total consideration of approximately US$15.5 million, which will be subject to customary post-closing adjustments. Seventeen percent of total consideration was paid following the consummation of the transaction, 43% is expected to be paid in July 2022, 20% in June 2024 and the remaining 20% in June 2025, subject to any post-closing indemnification adjustments.

About Despegar.com

Despegar is the leading online travel company in Latin America. For over two decades, it has revolutionized the tourism industry through technology. With its continuous commitment to the development of the sector, Despegar today is comprised of a consolidated Group that includes Best Day, Viajes Falabella, Viajanet and Koin, (the Company’s fintech business) in turn becoming one of the most relevant companies in the region and able to offer a tailor-made experience for more than 29 million customers.

Despegar operates in 20 countries in the region, accompanying Latin Americans from the moment they dream of traveling until they share their memories. With the purpose of improving people's lives and transforming the shopping experience, it has developed alternative payment methods and financing, democratizing access to consumption and bringing Latin Americans closer to their next travel experience. Despegar is traded on the New York Stock Exchange (NYSE: DESP). For more information, please visit www.despegar.com.

Forward-Looking Statements

This press release includes forward-looking statements. We base these forward-looking statements on our current beliefs, expectations and projections about future events and financial trends affecting our business and our market. Many important factors could cause our actual results to differ substantially from those anticipated in our forward-looking statements. Forward-looking statements are not guarantees of future performance. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or to revise any forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220602006013/en/

Despegar

Natalia Nirenberg

Investor Relations

Phone: (+54911) 26684490

E-mail: natalia.nirenberg@despegar.com

Source: Despegar.com, Corp.

FAQ

What is the significance of Despegar's acquisition of Viajanet?

The acquisition aims to enhance Despegar's market share in Brazil and improve service offerings.

How much did Despegar pay for Viajanet?

Despegar acquired Viajanet for approximately US$15.5 million.

When will the payments for the Viajanet acquisition be made?

Payments are scheduled for July 2022 (43%), June 2024 (20%), and June 2025 (20%).

How will the Viajanet acquisition impact Despegar's customers?

It is expected to enhance user experience and expand service options for Despegar's customers.

How does this acquisition affect Despegar's growth strategy?

The acquisition aligns with Despegar's strategy to strengthen its presence in the Latin American travel market.