NEW YORK (TheStreet) -- Hertz (HTZ) - Get Report stock has skyrocketed 17.3% to $15.11 and (former) competitor Dollar Thrifty Automotive (DTG) has jumped 8.9% to $42.30 after the vehicle rental companies on Monday announced that they have entered into an agreement for the former to buy the latter for roughly $1.17 billion in cash and stock. Hertz also raised its full-year guidance.
"Combining Hertz and Dollar Thrifty is an excellent strategic fit," Hertz chief executive Mark Frissora said in a written statement. "Dollar Thrifty is a $1.6 billion business with more than 1,550 corporate and franchise rental locations worldwide which, when combined with our global network, will serve rental customers on six continents from approximately 9,800 locations."
On Monday, Hertz also raised its full-year adjusted revenue and earnings per share guidance compared with the guidance previously provided on February 24. The company now expects to generate worldwide revenues in the range of $7.5 billion to $7.7 billion, up from $7.4 billion to $7.6 billion and adjusted earnings per share in the range of 43 cents to 45 cents a share, up from 37 cents to 39 cents a share.
Analysts surveyed by Thomson Reuters have forecast earnings of 44 cents a shares on revenue of $7.45 billion.
-- Reported by Andrea Tse in New York
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