The acquisition brings both Avis and Budget brands together globally under a single corporate ownership.

‘This transaction represents an outstanding opportunity for Avis Budget, and the acquisition of a business that we have long sought to own,’ says Ronald Nelson, Avis Budget Group Chairman and Chief Executive Officer.

‘The transaction re-unites the global operation of the Avis and Budget brands under one corporate umbrella, and is both financially and strategically compelling.  We expect the combination of our two companies will allow us to more effectively serve vehicle-rental customers worldwide, and to achieve operating synergies of more than $30 million a year.

‘In addition, the acquisition will give Avis Budget an increased presence in rapidly-growing international markets, including India and China.’

Morgan Stanley and Citigroup are acting as financial advisors to Avis Budget Group and Kirkland & Ellis is acting as legal counsel.