Franchised travel chain Helloworld will merge with AOT, a privately-owned travel service provider.

Shareholders in Helloworld have agreed to the deal in which the travel agency will purchase AOT for $25m cash, and 218.7 shares. AOT will hold 40 percent of the diluted share capital of the company, reports Inside Retail.

AOT operates in the inbound, wholesale and government travel sectors and for financial year 2015 achieved a $55.8m turnover.

The co-founder and CEO, Andrew Burnes, will take on the CEO and managing director role at Helloworld.

The sale has an expected January 2016 completion date.

Major shareholders in Helloworld include Qantas and Europe Voyager.

• Find out more about the travel and accommodation market here.