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Avis Buys Payless Car Rental

Avis pays $50 million in cash for the car-rental company


autosAvis Budget Group (CAR) announced Monday, that it has expanded its fleet with the purchase of Payless Car Rental.

Avis acquired Payless for about $50 million in cash, and expects to use the acquisition to expand it global presence and accelerate the company’s growth. Avis plans to operate Payless as a separate brand.

Payless was founded in 1971 and generates $80 million in annual revenue, reports The Wall Street Journal.

The acquisition of Payless will add 120 new locations in the United States, Canada, Europe and South America to Avis’ global market.

Avis rival Hertz Global Holdings (HTZ) announced in June that it plans to increase its locations to 12,000 in the coming years.

Avis also purchased hourly car-rental company Zipcar for $500 million earlier this year.

CAR shares were up marginally as of Monday morning, continuing a 115% year-to-date run.

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