Car rental giant Hertz is in the process of purchasing Dollar Thrifty. The deal is said to be for $2.3 billion, according to an Associated Press report. As a result, Dollar Thrifty stock increased by seven percent in trading before the market opened today.
Good news, rental car fans – Hertz has managed to expand its operations by over 1,500 locations. The company has reportedly just agreed to snatch up Dollar Thrifty car rental in a $1.17 billion deal that included both cash and Hertz stock. According to USA Today, that figure values Dollar Thrifty shares at a 5.5 percent premium over what the company's stock had been trading for recently.
It looks like Hertz has finally heard of Zipcar. The popular car rental agency has just launched a new service called Connect, and it's a lot like the service offered by eight-year-old Zipcar. Connect customers will pay an annual fee that allows them to rent vehicles by the hour -- an arrangement very similar to the one offered by Zipcar. Members go online to make reservations and then use swipe cards to open cars that are parked at lots all over the city. Rather predictably, chic city cars like