Online travel and leisure company, lastminute.com, has bought UK hotel consolidator and package holiday re-seller, Med Hotels.

Med Hotels comprises Med Hotels Ltd and Travel Bargains Ltd and the £16.1m purchase price will be paid by £8m in cash and the issue of £2.9m new shares in lastminute.com.

Further consideration will be paid - capped to a maximum of £6.5m and in either new shares or cash at lastminute's option - depending on Med's EBITDA performance for the years to 31 October 2003, 2004 and 2005.

Amongst other benefits, the acquisition will see a widening of lastminute's hotel database, giving access to over 1500 resort-based properties especially in Greece, Spain, the Canary Islands, Cyprus, Tunisia and Portugal. Details: www.lastminute.com