Zipcar's weekend crush solution: Merge with Avis |
| CNNMoney - Jan 2, 2013 |
It might be easier to get a Zipcar rental on weekends now that the popular urban car-sharing service is being acquired by traditional car rental company Avis Budget Group.
The companies said Wednesday that Avis (CAR, Fortune 500) has agreed to buy Zipcar (ZIP) for about $500 million, or $12.25 per share in cash, which is nearly 50% above Monday's closing price.
Zipcar's stock surged Wednesday to match Avis' valuation. But the stock is still about 50% below about its initial public offering price of $18.
The company made its market debut on April 14, 2011, and surged 70% that first day to a market cap of $1 billion. But then the stock price peaked and made a precipitous slide of more than 50% until Wednesday's rally.
Avis said it plans to use its fleet of rental cars to beef up Zipcar for its weekend demand, "which is currently constrained by fleet availability."
Read Full Article from CNNMoney
- Posted: 2013-01-02 19:07:15
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