Online travel company ebookers is to be bought by the owner of the Avis car rental business after agreeing a deal today worth £209 million.

US-based travel and property business Cendant said the acquisition would give it a major foothold in Europe, allowing it to link its hotels and car rental businesses to the long-haul flights offered by ebookers.

Founder Dinesh Dhamija will resign as chief executive after the sale and receive a £700,000 pay-off, as well as proceeds from a trust fund in his name and which owns more than 40% of the shares.

Ebookers, founded in 1999, has seen its stock more than double since it first announced it was involved in takeover talks three months ago.

Ebookers, which has websites in 13 European countries and brands including Flightbookers, Bridge The World and The Adventure Company, has had a tough year, although it did cut third quarter losses by 39% to £1.9 million.

New York-based Cendant employs about 90,000 staff and provides services in more than 100 countries.

It is a specialist in trips to Australia and the United States and runs the Galileo distribution system used by 44,000 travel agencies and more than 60,000 hotels.

The group is also the world's largest car rental operator, with the Avis and Budget brands.

Cendant said the combined group would be well-placed to meet the needs of the rapidly changing European travel sector.

Its chief executive, Samuel Katz, said online penetration of the European travel market stood at less than 10%, compared with more than 30% in the US, giving it the potential for "significant growth".

The directors of ebookers will unanimously recommend the 320p a share deal to shareholders, whose approval is needed for the acquisition to go through.

Subject to approval, the purchase could be completed in the first quarter of next year.