- ‘Welcome to the edge of freedom’: Biden’s boots touch down in DMZ
- Obama: Hole U.S. ‘digging out of’ requires billions more in unemployment benefits
- Obama’s regulatory agenda will cost U.S. economy $143B next year: report
- Patriot Act author on James Clapper: Fire, prosecute him
- Russia P.M. Medvedev: No amnesty for political prisoners
- Michigan GOP Senate hopeful reminds government is the ‘servant’
- Christmas, by Congress: Members mull a 15-cent tax on trees
- U.S. unemployment falls to five-year low of 7 percent; 203K jobs added
- World mourns Nelson Mandela and celebrates his life; burial set for Dec. 15
- Bill O’Reilly reminds: Nelson Mandela ‘was a communist’
Avis buying Zipcar in deal worth nearly $500M
Car sharing has become a popular alternative to traditional rentals in metropolitan areas and on college campuses, allowing members to get a vehicle quickly for short trips. Zipcar, which was founded in 2000, has more than 760,000 members. It went public in 2011 and posted net income of $850,000 in the first nine months of this year.
“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 Avis Chairman and CEO Ronald Nelson.
Bringing the Avis fleet into play will help Zipcar meet high demand on weekends, Avis said, when most people make a run to the grocery store or run other errands. It will also help Avis compete with Hertz Global Holdings Inc., which has its own car sharing service, Hertz on Demand.
Both Zipcar and Hertz on Demand park cars throughout cities and college campuses, which allow renters to avoid waiting in lines at traditional car rental counters. Some areas provide reserved parking for the cars and vehicles can be located online or through the companies’ smart phone applications.
The car sharing companies also pay for fuel, a cost not included in standard car rentals. Although the hourly rental options are quicker and cheaper than renting a car by the day, Zipcar and Hertz on Demand are generally more expensive for rentals longer than 24 hours.
Its shares jumped almost more than 47 percent to $12.19 in premarket trading Monday.
The boards of both companies unanimously approved the buyout. If Zipcar shareholders approve the deal, it’s expected to close in the spring.
Avis anticipates $50 million to $70 million in annual savings. The Parsippany, N.J.-based company also expects the acquisition will add to its adjusted earnings per share in the second year after it is complete.
Avis also maintained its 2012 adjusted earnings forecast Monday of about $2.35 to $2.45 per share on revenue of approximately $7.3 billion.
Analysts predict earnings of $2.42 per share on revenue of $7.3 billion.
- Bill OReilly reminds: Nelson Mandela was a communist
- Spike in battlefield deaths linked to restrictive rules of engagement
- Obama: Hole U.S. 'digging out of' requires billions more in unemployment benefits
- Snow storm sucker punch: U.S. hit by winter wave
- Syria mess may spawn 'Islamic emirate' world must deal with, says Iraq's top diplomat
- U.S. pilot scares off Iranians with 'Top Gun'-worthy stunt: 'You really ought to go home'
- Hack attack: 2 million Facebook, Twitter passwords stolen
- U.S. debt jumps a record $328 billion tops $17 trillion for first time
- GORDON: Purging America's military
- Obamacare's bold vision turns murky: Health reform downsized, promises broken
Independent voices from the The Washington Times Communities
Get in the middle of all the action inside and outside the boxing ring.
Opinion, analysis, and musings on politics, pop culture, reinvention, and the resultant flotsam and jetsam floating around the right-of-center quadrant of the Left Coast.
The cold hard truth about politics in America today and the state of this once great nation.
Find the latest news and happening that effect those in the Washington D.C., Northern Virginia and Maryland Metro region.
White House pets gone wild!