The Avis Budget Group and leading car sharing company Zipcar have announced that Avis Budget is acquiring Zipcar for around $500 million, or $12.25 per share in cash. This price is 49% more than the closing share price on December 31st, 2012.
As a convenient alternative to owning and maintaining a car, in recent years car sharing has been growing strongly worldwide. Zipcar has grown to include more than 760,000 members, with a major presence in 20 cities in the U.S., Canada, and Europe, including services located at more than 300 university campuses.
The deal is still subject to the approval of Zipcar shareholders, but is expected be finalized by early 2013. After the acquisition, Zipcar will operate as a subsidiary of Avis Budget Group. The parent company plans to accelerate growth by placing more cars in more locations, and by using some of Zipcar’s existing technology for the Avis and Budget fleets.
Back in 2011, Zipcar raised over $170 million in an IPO, and has been pushing international expansion plans forward, after itself acquiring competitors Flexcar and Streetcar.
Do you think this news makes it more likely that you’ll use car sharing service Zipcar in the future?
Image CC licensed by jm3: Zipcar