The deal, which has been agreed for an undisclosed sum, sees Tourico join with Hotelbeds’ bed bank business unit, with the Spain-based company taking 100% control of the merged business.

The formerly Tui-owned bed bank, said Tourico would continue to operate as an independent company, while a longer term strategy is developed to combine the two businesses.

The deal has been achieved with the backing of owners Cinvin and Canada Pension Plan Investment Board, (CPPIB) which last year acquired Hotelbeds from Tui for more than €1 billion.

After the deal was announced, Joan Vilà, executive chairman of Hotelbeds Group said: “With the backing of Cinven and CPPIB we are entering the next phase of our development since becoming an independent company back in September.

“Therefore it gives me great pleasure to announce that Tourico Holidays will join Hotelbeds Group. Tourico Holidays has a well-deserved reputation for excellence and innovation that I have respected for many years. I look forward to working with its experienced leadership team.

“The proposed deal will enable us to enhance our footprint, especially in Tourico Holidays’ home market of North America whilst they will benefit from belonging to Hotelbeds Group´s global network. Together we will combine our best in class technology and distribution expertise for the benefit of both our hotel partners and clients.

“For the time being, both businesses will continue as usual, focusing on our top priority: providing the best possible service to our hotel partners and clients.”

Uri Argov, chief executive of Tourico Holidays added: “We´re very excited about what this deal can mean to the B2B travel industry. Tourico Holidays’ management team looks forward to bringing together these two great businesses in order to better serve our combined supplier and client base.

"At a cultural level, this deal is strong because our two organisations are both entrepreneurial, dynamic and high energy – and just like Hotelbeds Group, we´re passionate about what we do and focus hard on execution.”