(MENAFN) New Jersey-based Avis Budget Group Inc. has agreed to acquire Zipcar Inc. for USD491 million, Bloomberg reported.
Zipcar's board agreed to Avis Budget's bid of USD12.25 a share, a 49 percent premium on the Cambridge, Massachusetts- based company's Dec. 31 closing price.
Avis Budget is seeking to tap the fast-growing market for young, urban customers who want to rent cars by the hour, rather than owning their own vehicles.
The market is currently dominated by Enterprise Holdings Inc. and Hertz Global Holdings Inc., the two largest US car-rental companies.
Zipcar, founded in 2000, estimated its first annual profit this year of about USD4 million.
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