Luxury operator Scott Dunn has taken a majority stake in rival Imagine Travel.
Imagine is best known for its African tour business but has expanded into offering Latin American and Asian tours.
Scott Dunn has paid an undisclosed amount for the stake, the Daily Telegraph reported.
The investment by Scott Dunn, which targets the wealthiest 1% of consumers, will help Imagine, which has a wider customer reach, further develop its brand and customer offering.
Imagine is on track to report sales of approximately £13 million this year, with the enlarged group’s combined turnover for the coming financial year set to be in the region of £60 million.
While both brands will remain in place, Scott Dunn will help Imagine with back-office support and in areas such as marketing and commercial deals.
Scott Dunn founder Andrew Dunn said: “They’re a great brand as there’s almost no cross-over in term of guests and they’re luxury, but at a different price point to us.”
He said that demand for luxury holidays continues to grow despite continued slow growth in the UK economy.
“Even in the recent three weeks of hot weather, we saw sales up 24% year on year,” he said.
Imagine was founded in 2004 by Ben Morison, who will remain with the business following the deal.
Scott Dunn currently employs more than 100 people in the UK, as well as several hundred overseas.