The Argentine company Despegar today announced the acquisition of ViajaNetone of the leading online travel agencies in Brazil, for a total amount of approximately US$15 million, subject to customary closing conditions. This is the fifth purchase made by the company in Latin America and the third in Brazil in the last two years.
Under the terms of the agreement, 60% of the purchase price is paid at closing, 20% within the next 24 months and the remaining 20% within the next 36 months.
During 2019, before the pandemic, ViajaNet recorded audited revenues of approximately US$30 million. During 2021, ViajaNet’s online sales represented approximately 98% of total sales, with 88% of gross bookings originating from the consumer channel and the rest through the corporate channel. Furthermore, 98% of gross bookings corresponded to the air segment of the Brazilian travel market, which provides Despegar with the opportunity to cross-sell its accommodation inventory and other travel products to ViajaNet customers.
“The agreement to acquire ViajaNet, Despegar’s third acquisition in Brazil in the last two years and the fifth in Latin America, is one more step in Despegar’s regional consolidation strategy, with a special focus on Brazil. It will allow us to strengthen the accommodation and service proposal through a new brand and its customer base, in addition to adding talent to our Brazilian operations. Also, thanks to our already proven integration capacity, we hope to capture other synergies in all areas of the company”, said Marcelo Grether, Chief M&A & New Business Officer of Despegar.
Paulo Nascimento, Chief Executive Officer of ViajaNet, added: “We are delighted to join the Despegar team, a leader in the Latin American travel market. Be part of Despegar will give our clients access to a larger and more diverse range of travel productsat the same time that they will benefit from the company’s technological innovation at the service of travellers”.
Both companies will continue with their brands and work independently on their commercial management. Closing of the transaction is expected to take place in the second quarter of 2022.