6/1/2023 0 Comments Zipcar stockIn particular, Avis Budget expects significant cost reductions across the fleet life cycle (from procurement to operations and maintenance to disposition, as well as financing), in addition to savings from eliminating Zipcar's public-company costs. We also expect to leverage Zipcar's technology to expand mobility solutions under the Avis and Budget brands."Īvis Budget expects to generate $50 to $70 million in annual synergies as a result of the transaction. We expect to apply Avis Budget's experience and efficiencies of fleet management with Zipcar's proven, customer-friendly technology to accelerate the growth of the Zipcar brand and to provide more options for Zipsters in more places. "We see car sharing as highly complementary to traditional car rental, with rapid growth potential and representing a scalable opportunity for us as a combined company. Nelson, Avis Budget Group chairman and chief executive officer. "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. Zipcar has combined leading-edge technology, an outstanding customer experience, and clear brand messaging to develop strong loyalty and advocacy among its customers. Zipcar now has more than 760,000 members, known as Zipsters, with a market-leading presence in 20 major metropolitan areas in the United States, Canada and Europe, and fleet positioned at over 300 college and university campuses. Zipcar has led this industry, leading in innovation and world-class service. The Boards of Directors of both companies unanimously approved the transaction, and Zipcar shareholders representing approximately 32% of the outstanding common stock have agreed to vote their shares in support of the transaction.Ĭar sharing has grown to be a nearly $400 million business in the United States and is expanding rapidly in major cities around the world. 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. (NASDAQ: ZIP), the world's leading car sharing network, today announced that Avis Budget Group has agreed to acquire Zipcar for $12.25 per share in cash, a 49% premium over the closing price on December 31, 2012, representing a total transaction value of approximately $500 million. 2, 2013 /PRNewswire/ - Avis Budget Group, Inc. Avis Budget re-affirms its prior estimates of full-year 2012 results.Transaction targeted to close in spring 2013.Combination expected to produce $50-70 million in annual synergies.
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