Cwmbran-based Holiday Express Group has entered into an agreement with Travelzest, led by ex-TUI executive Chris Mottershead, which sees an initial deal of £2.18m in cash and shares, followed by an earn-out which could net £4.4m for the owners.

The Holiday Express Group is owned by local entrepreneur David Powell. It trades under the www.flight.co.uk, www.holiday.co.uk and www.discountholidays.co.uk banners and fulfils package holiday sales for some of the most well-known online travel brands including Expedia, lastminute and Opodo.

The group specialises in online travel sales, predominantly in the package holiday, charter flights and ski sectors of the industry.

In the year ending September 30, 2004, Holiday Express reported a turnover of £22.4m with a profit before tax of £500,000.

David Powell, Holiday Express Group's founder and current managing director, said: "We have created an extremely strong and profitable online travel business. In fact, earlier this year www.holiday.co.uk beat some of the most well-known players in the industry to win the top site accolade in a Which? report, clearly demonstrating that what we have created is easy to use, offers the product depth, which the market demands, and provides high levels of customer satisfaction. "We are sad to finally be saying goodbye to the ownership of Holiday Express. It has been my baby since 1980. "However, I will remain as managing director, along with my sales director, Joanna Beard, and together we will continue to operate and expand the business for the benefit of all the shareholders in the Travelzest group."