London-listed short-haul holiday firm On the beach group saw its shares rise nearly 5.5 per cent today after it snapped up a rival business for £12m.
On the beach group has bought online travel agent Sunshine.co.uk in a deal the holiday company hopes will help boost its earnings in the current financial year to 30 September.
Simon Cooper, chief executive of On the beach group, pointed out: “We are delighted to have acquired a brand as well-established with beach holidaymakers as sunshine.co.uk.
“This earnings enhancing transaction reflects the board’s ambition to consolidate On the beach’s leading position in the online beach holiday space while supporting our drive to exclusivity and underpinning our ability to further leverage our scale.”
Set up in 2004, Cheadle-based On the beach group sold a majority stake in its business to Livingbridge in 2007 in a deal worth £36m.
In October 2013, Inflexion Equity Partners acquired a majority stake in the group from Livingbridge for £73m.
On the beach group debuted on the London Stock Exchange in a £240m listing in September 2015.
Shares in the firm closed up 5.42 per cent at 360p.