(August 27, 2012) Hertz Global Holdings, Inc. and Dollar Thrifty Automotive Group, Inc. today announced that they have entered into a definitive merger agreement under which Hertz would acquire Dollar Thrifty for $87.50 per share in cash in a transaction valued at a corporate enterprise value of approximately $2.3 billion.

"The combination of Hertz and Dollar Thrifty will create a global, multi-brand rental car leader offering customers a full range of rental options through its strong premium and value brands. The boards of directors of both companies have unanimously approved the transaction," Hertz said in a press release.

This is not the first effort put forth by Hertz to acquire Dollar Thrifty. On April 26, 2010, Hertz announced the acquisition of Dollar Thrifty for a purchase price of $41 per share, in a mix of cash and Hertz common stock. But Dollar Thrifty rejected the $1.44 billion bid and announced on Oct. 12, 2011, that it had taken itself off the market because it did not receive any proposals that would pass antitrust muster.

Hertz also announced today that it has reached an agreement to sell the Advantage business to Franchise Services of North America (FSNA) and Macquarie Capital.  FSNA is an experienced rental car operator with subsidiaries including, among others, U-Save, Rent-a-Wreck, Practicar and X Press Rent-a-Car. 

The closing of that divestiture is conditioned upon, among other things, Hertz completing an acquisition of Dollar Thrifty.

Hertz Chairman and Chief Executive Officer, Mark P. Frissora said: "We are pleased to have finally reached an agreement with Dollar Thrifty after a lengthy – but worthwhile – pursuit.  We have always believed that a combination with Dollar Thrifty is the best strategic option for both companies.  The transaction provides Hertz instant scale with two new, well-established brands with airport concession infrastructure in the mid-tier value segment. 

"We'll be a stronger global competitive player with a full range of rental options not only in the U.S. but in Europe and other markets given Dollar Thrifty's strong international presence.  In addition, we look forward to moving efficiently and swiftly through the regulatory process having reached an agreement to divest our Advantage brand."