Avis Budget Group Inc. is buying U.S. car-sharing company Zipcar Inc. for about $500 million in cash.
Zipcar has a rental operation in Newark that serves the University of Delaware community.
The $12.25 per share offer represents a hefty premium over Zipcar’s closing share price Monday. Following the close of the deal, Zipcar will operate as a subsidiary of Avis.
The shared rental market is fast growing area in an otherwise sluggish car rental industry that is consolidating into a few massive players.
Avis could also grow the company rapidly, using its buying power on car purchases and adding locations.
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via Avis Acquires Zipcar for $500M | New York Citybizlist.
