Avis (Avis Budget Group ), the Vehicle rental services giant announced that it is acquiring the car sharing service Zipcar for $500 million or $12.25 per share (50% premium over Zipcar’s closing price on December 31, 2012. ). The transaction is expected to be finalized in the spring of 2013.
Zipcar was founded in 2000, has 750,000 + members and 11,000+ vehicles on offer – operating in the United States, Canada, the United Kingdom, Spain and Austria. Zipcar acquired many rivals like Avancar, CarSharing.at, Streetcar and Wheelz, among others and merged with it’s main US. competitor Flexcar in 2007.
Ronald L. Nelson, Avis chairman and CEO, says on this acquisition:
“By combining with Zipcar, we will significantly increase our growth potential, both in the United States and internationally, and will position our Company to better serve a greater variety of consumer and commercial transportation needs.
We see car sharing as highly complementary to traditional car rental, with rapid growth potential and representing a scalable opportunity for us as a combined company.”