Avis Budget Group, a Nasdaq-listed car rental company, has agreed to buy car-sharing peer Zipcar for nearly $500m.
Avis will pay $12.25 per share for Zipcar, which has made corporate venturing investments in start-ups Wheelz and Catalunya Carsharing, known as Avancar in Spain.
Car sharing has grown to be a nearly $400m business in the US. Zipcar has more than 760,000 members, known as Zipsters, in 20 major metropolitan areas in the US, Canada and Europe, and fleet positioned at over 300 college and university campuses.
Citigroup is financial adviser and Kirkland & Ellis legal counsel to Avis. Morgan Stanley and Latham & Watkins is acting for Zipcar in the respective roles.