Gullivers Travel Associates, the privately owned company which packages trips for Asian and European tourists,
is selling for $1.1bn (£570m) to America's Cendant, the world's largest travel group.

The deal will net hefty payouts for the founders of Gullivers - David Babai, Eddie Faith and Uzi Kattan - who started the company in 1975 as a small tour operator. Gullivers is now the largest privately owned retailer of holiday packages to travel agents and operators in the world. It is on track to notch up $1bn in gross bookings in 2005, with net revenues of $230m. It is anticipated that key management of Gullivers, including David Babai, chairman, will remain with the company in similar capacities.

The transaction is subject to certain regulatory filings and is anticipated to close in April 2005. Cendant expects to fund the acquisition by utilizing the proceeds from the previously announced 100% initial public offering of the Company's Wright Express unit, which is expected to occur in February or March 2005.