logo
Share SHARE
FONT-SIZE Plus   Neg

Avis To Buy Zipcar For $12.25/share - Quick Facts

Avis Budget Group Inc. (CAR) and Zipcar Inc. (ZIP) announced that Avis has agreed to acquire Zipcar for $12.25 per share in cash, representing a total transaction value of approximately $500 million. Avis also reiterated its estimates of full-year 2012 results.

Zipcar now has more than 760,000 members, known as Zipsters, with presence in 20 major metropolitan areas in the United States, Canada and Europe, and fleet positioned at over 300 college and university campuses.

Avis expects to generate $50 million to $70 million in annual synergies as a result of the transaction. The transaction is expected to be accretive to Avis Budget's earnings per share in the second year following the acquisition, excluding certain items and purchase-accounting effects.

The Boards of both companies approved the transaction. Zipcar shareholders representing approximately 32% of the outstanding common stock have agreed to vote their shares in support of the transaction. The transaction is subject to approval by Zipcar shareholders and other customary closing conditions, and is expected to be completed in the spring of 2013.

Avis continues to expect full-year 2012 revenue to be approximately $7.3 billion, a 24% increase compared to 2011, and 2012 Adjusted EBITDA will be approximately $825 million to $840 million, excluding certain items, an increase of 35% to 38% compared to the prior year.

Avis continues to expect 2012 pretax income to be $450 million to $465 million and earnings per share to be approximately $2.35 to $2.45, excluding certain items.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Catabasis' phase II trial of Edasalonexent in boys affected by Duchenne muscular dystrophy is ongoing, and top-line results are anticipated in the first half of Q1 2017. American Express Co. (AXP) Thursday reported a drop in fourth-quarter profit, as revenues declined 4 percent due to absence of Costco portfolio while provisions for bad loans and marketing costs increased. Earnings fell short of Wall Street estimates, while revenues trumped expectations. New York-based... Home improvement retailer Lowe's Companies Inc. (LOW) has reportedly informed about 2,400 employees that they will be laid off. The majority of the lay offs are at the store level, while other affected positions are at distribution centers, contact centers and at the company's corporate office in...
comments powered by Disqus
Follow RTT