Cendant ( CD) agreed to acquire Budget Group for $107.5 million in cash and assume $2.7 billion of the car rental company's debt.

The companies have been in talks for several months. Cendant, which already owns the Avis car renting operation, will acquire Budget's businesses in the U.S., Canada, Australia, New Zealand and Latin America. Budget filed for Chapter 11 bankruptcy protection in July.

Shares of Cendant, which also owns travel, real estate and marketing divisions, closed up 30 cents, or 2%, at $15.15.