Avis to Buy ZipCar Car Rental Service for $ 500 Million


    2013 was just the beginning, and it was already marked by a major deal: the car rental company Avis Budget Group (Avis) intends to buy a short-term car rental service ZipCar at $ 12.25 per share - about $ 500 million, The Next Web reports .

    ZipCar service was founded in 2000 in the USA, it allows you to book a car online or by phone at any time - immediately or for a year in advance. Users have automated access to cars thanks to a special access card that allows you to open the car door.

    The ZipCar application for iPhone and Android allows you to give a horn to detect a car and open its doors. In November, the service had 767 thousand users and 11 thousand cars in the USA, Canada, Great Britain, Spain and Austria, which makes ZipCar the leading car-sharing network in the world.

    The Avis press release notes that the purchase price is approximately 50% higher than the market value of ZipCar as of December 31, 2012. The transaction is expected to be completed in the spring of 2013.

    Avis Budget Group operates two of the world's leading car rental brands, Avis and Budget, providing services in approximately 175 countries. Avis Budget plans to achieve significant cost savings by merging the fleet of the two companies.

    Upon completion of the transaction, ZipCar will operate as a subsidiary of Avis Budget Group. Avis Budget expects ZipCar will also be able to increase revenue by meeting the increased demand for ZipCar cars for the weekend with its Avis Budget fleet.

    UPD: there was news that ZipCar shareholders want to block the deal, citing the fact that last year the stock price reached $ 16.25, and 12.25 is not enough. In fact, the share price has been steadily decreasing: if after the IPO in April 2011 it amounted to $ 27.96, then on December 31, 2012 it was already 8.24.

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