B2B hotel accommodation wholesaler JacTravel has taken over accommodation provider TotalStay Group for an undisclosed sum.
The transaction was supported by Vitruvian Partners, the existing institutional shareholder of JacTravel.
The founder and management team of TotalStay Group will retain a “significant” minority interest in the enlarged group.
The enlarged group will benefit from greater scale in the accommodation market, with an annual combined turnover of more than £360 million and direct contractual relationships with over 14,000 independent and chain hotels in 800 cities wordwide.
Greater scale is expected to accelerate growth and deliver increased efficiency to the benefit of both customers and suppliers. It will also create new opportunities for the staff of both companies, which have been growing at around 20% a year in recent years.
JacTravel chief executive Terry Williamson said: “TotalStay is an exceptional business that we have long known and respected, whose growth since inception is testament to the talent and hard work of its management team and to the underlying attractions of the wholesale accommodation market globally.
“Bringing TotalStay together with JacTravel will enable us to provide customers and suppliers with a broader, more integrated platform, driving growth and efficiency.”
Peter Clements, chief executive of TotalStay Group, added: “JacTravel has been a long-standing partner of our business, and we share a core set of values right from the start of this exciting new venture.
“The opportunity to join forces and move forward together is a great proposition for our customers and suppliers, but also for our people. I am really looking forward to it.”
Ben Johnson, a partner at Vitruvian, said: “The vision that Terry and Peter have articulated for the enlarged JacTravel group is a compelling proposition that we are confident will deliver significant value for customers, suppliers and other stakeholders.
“We are pleased to support the continued success of JacTravel and welcome the shareholders and employees of TotalStay to the team.”