Over-50s specialist Saga has taken a 75% stake in online travel firm Destinology in a deal believed to be worth £20 million.

Saga will have the option to acquire the remaining shareholding at a later date, potentially making Destinology worth £30 million depending on the future performance of the business.

Destinology specialises in four and five star holidays to the UAE, Far East, Indian Ocean and Europe.

The acquisition will be wholly funded from existing cash resources within Saga’s travel business.

Destinology, founded in 2004 by CEO Dominic Speakman, handled 30,000 holidaymakers last year. It employs 110 staff at its Bolton head office.
Key senior management will remain with the business.

Saga sees the move as helping the group attract a new demographic of holidaymaker who may not have previously considered taking a Saga holiday.

Saga group chief executive Lance Batchelor said: “Destinology is one of the UK’s leading travel businesses with strong expertise in online sales and marketing and award winning service so we are very pleased to have brought the business into the group.

“It is an excellent fit with our existing travel brands – Saga Holidays, Saga Cruises and Titan Travel – particularly in relation to the demographic it serves, and will enhance our range of travel offers to customers.”

No one from Destinology was available for comment.