Hertz has finalised the takeover of US fleet leasing and management services firm Donlen. The deal was funded by $177 million in cash from Hertz and the assumption of $770 million in Donlen fleet debt.
Donlen has more than 144,000 vehicles under lease and management across the US, Canada and Mexico. It generated revenues of approximately $350 million last year.
Hertz, which is battling with rival Avis Budget to acquire Dollar Thifty, said: “This transaction is part of the overall growth strategy of Hertz to provide the most flexible transportation programs for corporate and general consumers.”
Donlen provides Hertz an “immediate leadership position” in long-term car, truck and equipment leasing and fleet management.
Hertz chairman and chief executive Mark Frissora said: “The acquisition of Donlen is consistent with the evolution of Hertz’s asset-light, technology focused business model.
“Integrating Donlen into the Hertz family of products gives us a yearly and multi-year offering that complements our current core competencies of hourly, daily and monthly car sharing and car rental options and provides the company with a more stable revenue stream and new adjacent markets to leverage our existing business model.”