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Avis buys Zipcar for $500 million

Rental car giant, Avis, buys car sharing company Zip Car

By Charles Gantt on Jan 2, 2013 09:21 am CST - 0 mins, 36 secs reading time

Avis has tossed its hat into the $400 million US car sharing market by purchasing Zipcar for about $500 million. Zipcar has a reported 760,000 members in 20 major US cities.

Avis buys Zipcar for $500 million | TweakTown.com

The acquisition comes at a 45% premium over Zipcar's closing price on Dec 31 2012 with the transaction set to complete in the spring of 2013. Zipcar was formed in January, 2000 as a way to bring the popular European concept of car sharing to the US

"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," said Ronald L. Nelson, Avis Budget Group Chairman and CEO in a press release.

Charles Gantt

ABOUT THE AUTHOR - Charles Gantt

A web developer by day, Charles comes to TweakTown after a short break from the Tech Journalism world. Formerly the Editor in Chief at TheBestCaseScenario, he now writes Maker and DIY content. Charles is a self proclaimed Maker of Things and is a major supporter of the Maker movement. In his free time, Charles likes to build just about anything, with past projects ranging from custom PC cooling control systems to 3D printers. Other expensive addictions include Photography, Astronomy and Home Automation.

NEWS SOURCE:mashable.com

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