Hays Travel managing director John Hays said: "Our staff were devastated to hear about Thomas Cook and we all immediately felt we wanted to help".
The travel and cruise industries have been devastated following the news of the Thomas Cook collapse a couple of weeks ago, which left 150,000 holidaymakers stranded overseas and 20,000 staff, including 9,000 in the United Kingdom, jobless.
Thomas Cook's collapse on September 23 under a mountain of debt led to 9 000 job losses in the United Kingdom and left 150 000 people stuck overseas, with the holiday plans of thousands more ruined.
Mr. Hays, who owns the business with wife Irene, said: "It is a game-changer for us, nearly trebling the number of shops we have and doubling our workforce - and for the industry, which will get to keep some of its most talented people".
U.K.travel company Thomas Cook has been purchased by its rival and will be rebranded Hays Travel.
Chairperson Irene Hays said: "Thomas Cook was a much-loved brand and a pillar of the United Kingdom and the global travel industry".
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Thomas Cook collapsed last month, with its United Kingdom business entering liquidation.
He also confirmed the Thomas Cook brand would disappear from the British high street and will be replaced by Hays.
"We look forward to working with many of them", said the independent travel agent's founders in a statement.
KPMG partner and joint special manager of Thomas Cook's retail division Jim Tucker said: "This is an extremely positive outcome, and we are delighted to have secured this agreement".
The company also offered jobs to over 600 former Thomas Cook employees and offered to help all of the Thomas Cook apprentices to complete their training at the Ofsted accredited Hays Travel Academy.
It throws a lifeline to up to 2,500 redundant employees, many of whom worked for decades at the 178-year-old firm before it collapsed into insolvency last month.
The Official Liquidator, when asked by AFP about the outlook for the sale of Thomas Cook's remaining assets, declined to comment - but added they would be sold "in the best interests" of its creditors.