Polish travel technology company eSky Group is planning to expand in Western Europe after announcing it will acquire Thomas Cook.

ESky, which owns a leading travel platform in Central and Eastern Europe, has signed an agreement with Fosun Tourism Group to buy Thomas Cook, except its business in China.

The company will continue to operate under the Thomas Cook name, with CEO Alan French remaining in place.

ESky hasn’t disclosed how much it has paid for Thomas Cook, but financial newspaper Nikkei Asia said the stake will be sold for $40 million. Fosun had been a shareholder in Thomas Cook since 2015, then took it over two months after it ceased trading in September 2019.

Fosun had reportedly been looking to offload Thomas Cook for the past 18 months and there had been reports earlier this year that a deal with eSky could be signed.

The deal will provide Thomas Cook with access to eSky’s flight inventory and will support continued growth. At the same time, eSky will be able to strengthen its position in Western Europe.

Esky Group co-founder and CEO Łukasz Habaj said: “The synergy of Thomas Cook’s brand heritage with our technology will drive Thomas Cook’s growth and allow us to strengthen eSky’s position in Western Europe. This acquisition is part of our strategy to diversify from just selling flights to offering package holidays across our existing markets in Europe and Latin America, as well as expand further into Western Europe.”

Alan French said: “The completion of this transaction will inject significant funding into our business as we rebuild the brand and accelerate the growth of this company. By combining the strength of our dynamic packaging technology and holiday know-how with the flight inventory, performance marketing and technical strength of eSky’s team, we are confident we will create a formidable European travel business.”