Shares in Avid Budget have advanced on the technology-heavy Nasdaq in New York this afternoon (January 3rd) on news the company has agreed to buy Zipcar, the world's largest car-sharing business.
The global vehicle hire organisation has signed on the dotted line to acquire Zipcar for $500 million (£307 million).
This is seen as a worthy investment for Avis, which claims the growing car-sharing market is worth $400 million in the US alone.
Zipcar has 767,000 members who pay an annual joining fee and are then charged an hourly rate to use its cars.
Avis will pay $12.25 per share for Zipcar, which is nearly 50 per cent more than the shares were trading at towards the end of last year.
At 16:30 GMT on the Nasdaq, shares in Avis were stable at $20.79 per unit, while Zipcar shares steadied after an initial rally at $12.17 per share.
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