Payless generates approximately $80 million in annual revenue. Avis Budget intends to operate Payles

Avis Budget Group, Inc. (Nasdaq: CAR ) announced today that it has acquired Payless Car Rental, the sixth largest car rental company in North America, for approximately $50 million in cash. The addition of the Payless brand will give Avis Budget Group a strong position nevada sports car rentals in nevada in the fast-growing deep-value segment of the car rental industry.
Founded in 1971, Payless brings approximately 120 rental locations nevada sports car rentals in nevada to Avis Budget Group's global nevada sports car rentals in nevada network in the United States, Canada, Europe and South America, including many in major airport locations. Similar to Avis Budget Group, Payless operates with a hybrid model of corporately operated locations along with locations operated by licensees. Unlike the Company's premium Avis brand and mid-tier Budget brand, nevada sports car rentals in nevada Payless focuses on the deep-value segment of car rental customers.
Payless generates approximately $80 million in annual revenue. Avis Budget intends to operate Payless nevada sports car rentals in nevada as a separate brand from a customer perspective, while realizing significant cost savings as a result of the transaction, primarily from lower vehicle depreciation, reduced fleet interest expense and administrative cost synergies.
"Payless expands our global footprint, nevada sports car rentals in nevada enables us to support Budget's mid-tier brand positioning, and gives us greater flexibility to capitalize on opportunities in an additional segment of the car rental market in order to help accelerate our growth," said Ronald L. Nelson, Avis Budget Group Chairman and Chief Executive Officer. "At the same time, we expect this transaction to generate an attractive return on our investment."
Avis Budget Group, Inc. is a leading global provider of vehicle rental services, both through its Avis and Budget brands, which have more than 10,000 rental locations in approximately 175 countries around the world, and through its Zipcar brand, which is the world's leading car sharing network, with more than 790,000 members. Avis Budget Group operates most of its car rental offices in North America, Europe and Australia directly, and operates primarily nevada sports car rentals in nevada through licensees in other parts of the world. Avis Budget Group has approximately 29,000 employees and is headquartered in Parsippany, N.J. More information is available at www.avisbudget.com.