Despegar signs $15 million deal for Viajanet

ByRochelle W. Stone

May 6, 2022

Latin American digital travel agency giant Despegar.com signed a $15 million acquisition agreement for Brazilian travel agency TVLX Viagens e Turismo SA (viajanet) as part of its regional consolidation strategy.

Under the terms of the agreement, which is subject to regular closing rules and is expected to take place in the second quarter of this year, Despegar.com will pay 60% of the purchase price at closing and 20% in 24 months. The remaining 20% ​​would be due in 36 months.

“The acquisition of Viajanet, our third in the past two years in Brazil, is another step in our regional consolidation strategy that will allow us to deploy more of Despegar’s higher-margin non-airline inventory through through a new brand and its customer base while strengthening our team in the country,” Marcelo GretherChief M&A and new business officer of Despegar, said in a Press release Friday (May 6).

See also: PYMNTS Intelligence: The State of Latin America’s Travel and Online Payments Industry

“We expect to capture other significant synergies by leveraging Despegar’s technology platform to improve Viajanet’s conversion rates and performance marketing capabilities, among other benefits,” Grether added.

Viajanet recorded an estimated audited revenue of $30 million in 2019. Two years later, its online sales accounted for around 98% of total sales, with 88% of gross bookings in B2C and the rest in B2B. Additionally, 98% of gross bookings were in the air vertical of the Brazil travel market, which will provide Despegar with cross-selling opportunities for non-air products such as accommodations.

Read more: Distributed check-in and door-to-door reservations are disrupting travel

Despegar was launched 20 years ago and operates in 20 Latin American countries and serves over 29 million customers. Despegar is listed on the New York Stock Exchange under the symbol DESP.

aml/kyc

NEW PYMNTS SURVEY FINDS 3 IN 4 CONSUMERS HAVING HIGH DEMAND FOR SUPER APPS
About: Results from PYMNTS’ new study, “The Super App Shift: How Consumers Want To Save, Shop And Spend In The Connected Economy,” a collaboration with PayPal, analyzed responses from 9,904 consumers in Australia, Germany, UK and USA. and showed strong demand for one super multi-functional app rather than using dozens of individual apps.

We are always looking for partnership opportunities with innovators and disruptors.

Learn more


https://www.pymnts.com/news/retail/2022/deal-seekers-pulling-trigger-on-essentials-drove-amazon-prime-day-spending-40/partial/