Hertz Plans to Buy Dollar Thrifty

April 27, 2010 Updated: April 28, 2010

Car rental firm Hertz Global Holdings, the biggest rental firm in the United States, agreed on Monday to purchase smaller U.S. rival Dollar Thrifty Automotive Group Inc. for around $1.2 billion.

Hertz will now gain the Dollar Rent A Car and Thrifty Car Rental brands as the global leisure and travel market looks rebound from the worst recession in 50 years.

The cash and stock deal is valued at $41 per Dollar Thrifty share. With the acquisition, Hertz will only have one major competitor—Avis Budget Group—in the car rental market. “Dollar Thrifty also has a strong international presence, complementing our global footprint,” said Hertz CEO Mark Frissora in a statement.