So LowCostTravel Group will be the exclusive provider of holidays to Lastminute.com - but it is a deal which is causing a fair amount of head-scratching.
So much so, even co-founder of Lastminute.com Brent Hoberman chimed in on Twitter.
A brief statement from Lastminute says the company is partnering with the LowCost Travel Group to enhance its UK holiday offering by working with an expanded range of beach, ski and long-haul operators.
On the one hand it seems like yet another good deal for LowCost Travel and follows a similar three-year partnership to provide hotel content to easyJet Holidays signed last year.
Lastminute also says it contacted previous suppliers for the holidays section to terminate their contracts prior to announcing the deal.
But it also raises a question about what has happened to Travelocity-owned Lastminute.com in recent years.
There have been a string of management changes in the UK with Ian McCaig stepping down a year ago to be replaced by Ed Kamm, who has now also left the business.
But flash back to December 2003 when Lastminute acquired Medhotels for £16 million or, three months later, when it bought Online Travel Corporation for £55 million, including the IfYouSki and Bargainholidays brands.
Lastminute subsequently sold Medhotels to Thomas Cook in 2009 but wouldn't these brands and the technology behind them have given the company everything it needed to form a strong holidays offering without going to a third party?
The Lowcosttravel also brings the company's iVector technology, from Intuitive Systems, which lowcost owns a stake in and is credited for much of the business's own recent success.
Commercially it also makes sense because lastminute will not have to be involved in contracting but to leave you with Hoberman's point:
"how does LM differentiate then?"
Hoberman, by the way, declined to comment further.