Rental-car company Hertz Global Holdings Inc. (NYSE:HTZ) is buying rival Dollar Thrify Automotive Group Inc. (NYSE:DTG) for about $2.3 billion in cash to increase its global reach.
"The transaction provides Hertz instant scale with two new, well-established brands with airport concession infrastructure in the mid-tier value segment," Hertz said in a statement. "We'll be a stronger global competitive player with a full range of rental options not only in the U.S. but in Europe and other markets, given Dollar Thrifty's strong international presence."
The combined company would have sales for the 12 months ended June 30, 2012, of $10.2 billion and earnings before interest, taxes, depreciation and amortization of about $1.8 billion across approximately 10,000 locations globally. Hertz expects annual cost reductions of about $160 million after the merger.
In premarket trading, shares of Hertz jumped $1.95, or 15.2 percent, to $15.15 and shares of Dollar Thrifty climbed $5.88, or 7.3 percent, to $5.88.