Avis Budget to buy Zipcar for $500 million

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zipcarAvis 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.

Click here for the story from Citybizlist.

via Avis Acquires Zipcar for $500M | New York Citybizlist.

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