Two holiday price comparison websites, TravelSupermarket and Icelolly are planning to merge.
Moneysupermarket.com Group (MSMG) announced today that the merged company will be led by Icelolly CEO Richard Singer.
The company said Icelolly, which specialises in package deals, will complement TravelSupermarket’s comparison services for travel.
But the merger must first be approved by the Competition and Markets Authority.
In an announcement to the London Stock Exchange, MSMG said the transaction is structured as a cash-free exchange with both TSM and Icelolly entering the combined business on a cash and debt-free basis.
MSMG will own 62% of the combined entity and will have board control, with the remaining equity held by Icelolly owner Palatine Private Equity LLP and the management team.
No new capital is being invested into the business, although MSMG has agreed a loan note of £4m to fund working capital requirements.
In 2019 the combined revenue for the two brands was around £30m, but 2020 performance significantly impacted by the Covid-19 pandemic, it said.
The transaction, which MSMG said would ‘unlock commercial benefits’, is subject to clearance from the Competition and Markets Authority (CMA).
MSMG CEO Peter Duffy claimed the merger will benefit customers ‘with a richer and more diversified offer’, but the CMA could potentially block the move if it considers there will be insufficient competition in the market.