Posted by: youngragingbull | January 2, 2013

Avis Budget to buy Zipcar for $500M

Car rental company Avis Budget Group Inc. will buy Zipcar Inc for roughly US$500-million, surpassing larger rivals Hertz Global Holdings Inc. and Enterprise Holdings Inc. to become the top player in the fast-growing car-sharing market.   The offer of $12.25 per share in cash represents a premium of 49% to Zipcar’s Monday close. Zipcar’s shares were up 48.8% at $12.26 on the Nasdaq on Wednesday morning.

Zipcar has more than 760,000 members across the U.S. and Canada and controls about 75% of the $400 million car-sharing industry. The total market is projected to reach $10 billion over the next several years.

The deal is expected to close in the spring of 2013.

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