Lastminute.com snaps up Holiday Autos

LASTMINUTE.COM is to buy Holiday Autos in a cash plus shares deal worth £39.7 million.

The car rental broker, which was founded above a Saville Row tailors in 1987, is the latest high-profile acquisition for Lastminute. In the last year it has bought rival Travelselect.com, owner of Globepost, and the Destination Group.

The initial deal will see Lastminute issue new shares and hand over £16 million in cash.

Holiday Autos co-founder and current chairman and chief executive Clive Jacobs will become executive director and vice-chairman of Lastminute and pick up an additional £1.6 million loyalty bonus if he remains with the merged business for a year.

Lastminute claimed it would be able to find savings of at least £4 million. The combined group will have a turnover of £400 million.