Avis Budget Group lands Zipcar for $491 million

A sign hangs at a Zipcar rental car

A sign hangs at a Zipcar rental car branch in Manhattan (Credit: A Zipcar rental car branch in Manhattan (Getty Images))

Zipcar, the car-sharing service with franchises in New York and other cities, is being acquired by Avis Budget Group for $491 million.

Shares of Zipcar surged 47.8% to $12.18 Wednesday, while Avis shares advanced 4.8% to $20.77.

The offer was accepted by holders of 32 of Zipcar's shares, according to Automotive News.

"By combining with Zipcar, we will significantly increase our growth potential," Ronald L. Nelson, CEO of Avis Budget, said in a statement.

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