The board of Dollar Thrifty has accepted a higher offer from car rental giant Hertz. The revised takeover deal is worth about $1.56 billion in stock and cash, and trumps a rival offer from Avis Budget.
Hertz also said that it has begun the process of selling off its Advantage Rent-a-Car division to satisfy antitrust concerns.
Both Hertz and Avis have sought to expand their market share in the leisure market due to stagnation in the business rentals market.
Hertz’s new offer is about 22 percent higher than its original bid for Dollar Thrifty, which is one of the biggest players in the leisure rental car market.
Avis has argued that Dollar Thrifty was selling itself to Hertz for too little and was not giving its own offer - recently raised to about $1.36 billion - enough consideration.
Richard Broome, a Hertz spokesman, said: “We wanted to revive our offer in a way that would put this matter to rest.”
He added that the new offer would not require additional financing.
The new deal is expected to close at the end of the year. Hertz hopes to finalize a sale of Advantage by then.