Avis Budget Group pays $210 million to acquire major licensee

Markets Associated Press

The Avis Budget Group is acquiring a Budget Car Rental licensee for southern California and Las Vegas for approximately $210 million, plus the cost of its vehicle fleet.

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The acquisition of the licensee, which Avis Budget said Friday is Budget Car Rental's largest in North America, is expected to increase earnings and add $100 million in revenue. The deal is expected to close in fourth quarter.

The licensee operates at Los Angeles International and Bob Hope Burbank airports, as well as numerous local market locations throughout the Los Angeles metropolitan area. Sub-licensees operate throughout Southern California and in Las Vegas as well.

Avis Budget Group Inc, based in Parsippany, New Jersey, has more than 10,000 rental locations in approximately 175 countries, and through its car-sharing Zipcar brand.

Shares rose 55 cents to $53 in midday trading.