Zipcar was founded in 2000 and went public a year later in 2011. The company provided automobile rental for its members, billable by the hour or day. Their services soon became popular in college campuses and in metropolitan areas. Sure enough the popularity growth was also showing in the company’s increased net income. During the first nine months of 2011 alone Zipcar had a net income of $850000.
Ronald Nelson, the Avis CEO and Chairman had the following to say: “By combining with Zipcar, we will significantly increase our growth potential, both in the United States and internationally, and will position our company to better serve a greater variety of consumer and commercial transportation needs”
Avis will pay 49 percent more per share than Zipcar’s closing price on Friday. But as expected Zipcar shares jumped 47 percent in the pre-market trading Monday. As soon as the $500M deal will be finished Zipcar will become an Avis subsidiary.
