In return for the investment, Lastminute will be able to use Lufthansa City Center for online and offline marketing activity throughout the company's 530 travel agent outlets across Germany.
Lastminute will also provide and manage the website technology for LCC24.com, on to which LCC will migrate its existing offline business over the coming years.
Over the next three years, Lastminute has the option to increase its holding in LCC24, depending on how the partnership performs.
Lastminute chief executive Brent Hoberman and the website's group managing director Martha Lane Fox will become members of the supervisory board of LCC24.
According to Hoberman: "Germany is the largest travel market in Europe and this partnership ensures that we are extremely well placed to maximise the potential it presents. We have a great opportunity to grow our business substantially, working with such an excellent and well-established partner."
LCC is one of Germany's largest independent international franchised travel agencies, with 730 travel agencies and kiosks across Europe in 39 countries. Turnover from the group exceeded €1.6bn (£1bn) for the year to 31 December 2001. Lufthansa City Center's main areas of operations are Greece, Poland, Italy, Spain and Germany.
Lastminute already has a presence in the French market and outside of Europe it operates a venture in Australia.
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