TravelSupermarket’s owner Moneysupermarket.com Group said that the deal would enable “stronger and broader travel comparison services across both brands”.

Both TravelSupermarket and Icelolly.com will be retained as separate brands following the deal. Icelolly’s chief executive Richard Singer will lead a “common” management team across both brands.

Peter Duffy, chief executive of Moneysupermarket Group, said: “The combination of TravelSupermarket and Icelolly.com will benefit customers of both brands with a richer and more diversified offer as the travel and holiday markets recover.

“As well as unlocking commercial benefits, the creation of a standalone entity under a dedicated management team will give us greater flexibility going forwards to maximise shareholder returns.”

The deal will not involve any cash changing hands with Moneysupermarket taking a 62% stake in the new standalone company, with the other 38% being held by Icelolly’s owner Palatine Private Equity and the company’s management team.

The combined revenue for the two travel comparison sites was £30 million in 2019 although this was “significantly impacted” by the pandemic in 2020.