Hertz To Buy Dollar Thrifty for $41/Share

The deal offers Dollar Thrifty shareholders a 5.5% premium to Dollar Thrifty's closing price Friday of $38.85.
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PARK RIDGE, N.J. (

TheStreet

) --

Hertz Global

(HTZ) - Get Report

signed a definitive agreement to acquire

Dollar Thrifty

(DTG)

for $41 a share in a mix of cash and stock.

Hertz said in a press release it sees the deal immediately adding to its adjusted per-share earnings.

The deal offers Dollar Thrifty shareholders a 5.5% premium to Dollar Thrifty's closing price Friday of $38.85.

"Combining Hertz and Dollar Thrifty is an excellent strategic fit. 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," said Mark Frissora, Hertz's chairman and CEO, in a statement.

Under the terms of the agreement, the purchase price of $41 is made up of 80% cash and 20% stock.

The combined company's main competition would be

Avis

(CAR) - Get Report

.

-- Reported by Joseph Woelfel in New York.

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