Despegar modifies agreement to acquire Best Day

Despegar (Despegar.com) announced Thursday that it modified its previously announced agreement to acquire Best Day Travel Group (Best Day).

As a result of negotiations launched in response to the substantial effects of the Covid-19 crisis on the global travel and OTA industries, Despegar and Best Day have agreed on the following terms:


Base consideration of approximately $ 56.5 million. The purchase price is subject to adjustments based on net borrowing and working capital, and is paid 36 months after the closing date.

The revised terms do not require cash disbursements with respect to the purchase price at the closing of the transaction.


An additional variable purchase price component, ranging from zero to $ 20 million, payable 48 months after the closing date. The variable component will be based on Despegar’s share price performance over a period of six months before the fourth anniversary of the closing date.


These revised terms reflect a reduction of the consideration of $ 136 million announced on January 27, 2020, a portion of which was payable deferred and subject to performance-based adjustments.


After 36 years of operations in Mexico, Best Day has built an attractive business, with 95% of its income for 2019 in the Hotels, Packages and Other Travel Products segment, including a solid B2C offer with 70% of sales. online.

Best Day’s revenue for 2019 was approximately 25% of Despegar’s revenue.

As revealed on April 13, 2020, Despegar was in talks with Best Day to modify the purchase agreement, including changes in valuation and timing of payments, as well as minimize or eliminate associated short-term cash disbursements with the purchase price.

The acquisition is subject to customary closing conditions for transactions of this type, including approval by the relevant antitrust authorities. The closing of the transaction is expected to take place during the third quarter of 2020.


Despegar is the leading online travel company in Latin America. With more than two decades of commercial experience and operating in 20 countries in the region.


The company offers products from more than 270 airlines, more than 690,000 accommodation options, as well as more than 1,260 car rental agencies and approximately 200 destination service providers with more than 7,500 activities throughout Latin America.

The company owns and operates three recognized brands, Despegar, its global brand, Decolar, its Brazilian brand and Viajes Falabella.