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The first installment of our new predictive index shows that dealmakers expect overall M&A to increase, with health care outperforming the overall market READ MORE 

SLIDESHOW

ACG New York Women of Leadership - Entrepreneur Series
Barbara Bradley Baekgaard, founder of Vera Bradley (Nasdaq: VRA), is the latest in a series of entrepreneurs highlighted at ACG New York Women of Leadership events. Photo credit: Robert Blumenfeld

Watercooler

GTCR, Hormel, the Riverside Co-CEOs and Others Win M&A Mid-Market Awards
Amid a slow and challenging year for dealmaking, the winners of Mergers & Acquisitions’ 7th Annual M&A Mid-Market Awards outpaced the competition to grow, innovate and lead the middle market

Roundtable

Financial Services Companies Heat Up M&A Market
Speakers from Flexpoint Ford, Genstar Capital, Baird Capital, Madison Capital Funding and Katten Muchin Rosenman discuss the various factors playing a role in M&A activity within the financial services space

Expert's Corner

Pursuing Pharma Manufacturing
The fragmented pharmaceutical manufacturing industry provides plenty of opportunities for private equity investors, says JLL Partners founder Paul Levy

Today's Transactions:
Avis Acquires Zipcar for $500M

Competition in the car-rental space heats up with Zipcar play, boosting Avis' services in more than 20 metropolitan areas

Avis Budget Group Inc. (Nasdaq: CAR) agreed to buy car-sharing company Zipcar Inc. (Nasdaq: ZIP) for $500 million in cash.

The Parsippany, N.J.-based buyer offered Zipcar $12.25 a share—a premium of 49 percent over the target’s closing stock price of $8.24 at the end of 2012. Zipcar rents out vehicles by the hour or the day.

The transaction underscores the current competitiveness of the car rental market, pitting Avis against the rental businesses of rivals Hertz Global Holdings Inc. (NYSE: HTZ) and Enterprise Rent-A-Car. The Zipcar deal also comes just months after Hertz paid $2.3 billion for Dollar Thrifty Automotive Group Inc. (NYSE: DTG), an auction process that Avis attempted to win.

Zipcar, founded in 2000, has more than 760,000 members and operates in about 20 metropolitan areas in the U.S., Canada and Europe. Cambridge, Mass.-based Zipcar merged with a car-sharing rival, Flexcar, in 2007 and went public in April 2011 at $18 a share. After that, it acquired Denzel Mobility CarSharing GmbH, a car sharing service in Austria, for an undisclosed price, in July 2012.

Scott Griffith, Zipcar’s chief executive, and Mark Norman, its president and chief operating officer, are expected to stay on board as the company becomes a subsidiary of Avis and moves to a new head office in Boston.

AOL co-founder Stephen Case’s Revolution is currently Zipcar’s largest shareholder, with a 17.1 percent stake. Zipcar is also backed by venture capital firms Benchmark Capital and Greylock Partners.

Zipcar tapped investment bank Morgan Stanley to manage the sale, while law firm Latham & Watkins provided legal counseling. Citigroup and Kirkland & Ellis provided financial and legal advice to Avis Budget, respectively.

 

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