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Zipcar sold to Avis for $500 million

Zipcar sold to Avis for $500 million

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Avis Budget Group Inc., which specializes in vehicle rental, will buy Zipcar for $500 million US, the company announced Wednesday.

The boards of management on both sides unanimously approved the transaction, which must still get the green light from shareholders and market authorities. Avis and Zipcar hope to finalize everything by this spring.

''We see carsharing as highly complementary to traditional car rental, with rapid growth potential and representing a scalable opportunity for us as a combined company,'' said Ronald Nelson, CEO of Avis.

Zipcar currently has more than 760,000 members in Canada, the U.S. and Europe.

Source: Business Financialpost