Zipcar Acquired by Avis Budget Group for $500 Million
Avis Budget Group announced in a statement released today that it is purchasing Zipcar — a popular car sharing service — for $12.25 per share, which is a premium of 49 percent over the December 31, 2012 closing price of $8.24 per share.
This deal — expected to be completed sometime during the second quarter of 2013 — is worth approximately $500 million, and it gives Avis Budget Group an entry into the $400 million car sharing business. Zipcar will operate as a subsidiary of Avis Budget Group.
If the experiences of FlyerTalk members are any indication, the acquisition of Zipcar appears to be a good one for Avis Budget Group, which should be able to overcome many — if not all — of the negative experiences posted by FlyerTalk members.
However, Avis Budget Group is not without competition. Hertz On Demand was originally launched as Hertz Connect approximately four years ago to compete with Zipcar — and FlyerTalk members compare both car sharing services.
I personally have had no reason to use car sharing services such as Zipcar, but — as FlyerTalk members tend to say on a regular basis — your mileage may vary.