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Full-service independent agency Smarter Communications handled media planning and buying, but not creative, for Lastminute.com for two years. It was informed by Lastminute.com that it was moving the account to Manning Gottlieb from 1 July without a formal pitch taking place.
Lastminute.com was bought by Sabre Holdings, parent company of Travelocity, for £577m in May 2005. OMD already handles the media account for Travelocity in the US, which is thought to have prompted the realignment.
Graham Hawkey-Smith, Smarter Communications managing partner, said: "For a while we have been the anomaly as the only non-aligned agency.
"We're sorry not to have survived the latest reshuffle and very proud of the work we've done for Lastminute.com."
Lastminute.com has seen a number of changes to its marketing team over the past two years. In April, it appointed former Motorola and Honda marketer Simon Thompson as chief marketing officer and Alistair Daly as UK marketing director.
Last month, the company announced that it planned to roll out business-to-business and business-to-consumer divisions across 13 European markets as part of a UK regional restructure.