Despegar to acquire Brazilian OTA Viajanet

Online travel agency based in Argentina Despegar acquired Vijaneta competitor based in Brazil, for $15 million.

This is the third acquisition of a Brazil-based company for Despegar, which operates as Decolar in the Brazilian market.

In August 2020, it bought Koin, a Brazilian online payment platform, and earlier this year it acquired a 51% stake in Stays, a Brazilian provider of property management solutions for vacation rentals.

“The Viajanet acquisition, 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 in-country team,” says Marcelo Grether, Despegar’s Head of M&A and Head of New Business.

“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.”

In 2019, Vijanet’s revenue was around $30 million. In 2021, the company’s online sales accounted for approximately 98% of total sales, with 88% of gross bookings coming from its B2C channel and the rest from B2B.

Despegar also notes an opportunity to cross-sell its accommodation inventory and other non-airline products to existing Viajanet customers – as 98% of Viajanet’s bookings were for airline tickets.

“Being part of Despegar, our customers will have access to a broader and more diverse inventory of travel products while benefiting from the innovative technology capabilities of its leading travel site,” said Paulo Nascimento, CEO of Viajanet.

In March, Despegar released its most recent financial results, with adjusted EBITDA of $9 million in the fourth quarter of 2021, an increase of 9% compared to the fourth quarter of 2019 despite gross bookings of only 75% of the level of this trimester. The company operates in 20 Latin American countries.

The acquisition of Viajanet is expected to be finalized in the second quarter of this year.