Palatine Private Equity, which owns Leeds-based Icelolly.com said the firm’s specialism in price comparison and deals would complement TravelSupermarket’s comparison services for holidays, flights, hotels, car hire and travel ancillaries.

Both brands will be retained, with each benefiting from revenue diversification, shared commercial expertise and greater audience reach.

Icelolly.com brings an experienced senior team from the travel industry to the new joint venture, including chief executive Richard Singer who will lead a common management team across both brands.

MoneySupermarket Group, which owns TravelSupermarket, will remain the major shareholder of the new entity alongside Palatine Private Equity and the senior management team.

Completion of the transaction is conditional on the receipt of clearance from the Competition and Markets Authority.

Mr Singer said: “Combining the businesses will deliver a better service to both sets of customers.

“Making holiday discovery exciting and simple for everyone and helping holidaymakers to find and save money on their perfect holiday is at the centre of everything which the two brands have done and which the new company will do.

“We will continue to partner with some of the biggest and best travel companies in the UK and roll out more exciting and innovative services to bring a more complete comparison experience to each site”.

Peter Duffy, chief executive of Moneysupermarket Group, which is headquartered in Ewloe, North Wales, said: “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.”