P&A Providers & Administrators
MenuMENU
SearchSEARCH

Hertz Will Pay $250 Million to Buy Leasing Firm Donlen

July 18, 2011
3 min to read


Hertz Global Holdings Inc. will acquire vehicle-fleet leasing and management company Donlen Corp. for $250 million, and is also assuming $680 million in debt, in a deal the two companies said they plan to announce Monday.


The deal is easily digestible for Hertz, which has a market capitalization of $6.2 billion, and isn't expected to affect its efforts to acquire Dollar Thrifty Automotive Group, said Hertz Chief Executive Mark Frissora.

Ad Loading...


In May, Hertz offered more than $2 billion for Dollar Thrifty, countering an about $1.7 billion bid from Avis Budget Group Inc. Both bids involve a combination of cash and stock, reported The Wall Street Journal.


The Donlen acquisition will give Hertz access to the long-term vehicle-leasing and fleet-management businesses, expanding the range of services Hertz can offer to its corporate customers. Based in Northbrook, Ill., privately held Donlen leases and manages more than 144,000 vehicles in the U.S., Canada and Mexico.


Donlen provides corporate customers technology that gives them real-time data on their vehicles and other services to manage their vehicle fleets.


Hertz has been increasing its technology-oriented services, such as virtual kiosks and Hertz On Demand, which allows customers to rent vehicles spontaneously and competes with short-term rental services such as Zipcar Inc.


Hertz has about 500,000 vehicles in its fleet in the U.S. and Europe, and about 800,000 vehicles total when including licensees.

Ad Loading...


"This fits in with our asset-light, technology-driven strategy," said Mr. Frissora in an interview. "We didn't offer vehicles on a yearly basis. and now we will have that ability with Donlen. So it's very complementary."


The deal has already been approved by the boards of directors of both companies and by Donlen's shareholders. The transaction is expected to close in the third quarter of this year.


Gary Rappeport, Donlen's chief executive, said in a statement: "There are a number of synergies between the two businesses that will allow us to expand and accelerate Donlen's offerings."


As for the Dollar Thrifty deal, both Hertz and Avis are continuing to work through the Federal Trade Commission antitrust review process. However, Avis has become less interested in Dollar Thrifty since it announced its acquisition of Avis Europe in June for $1 billion, according to people familiar with the matter.


Still, Avis could offer more stock to raise its Dollar Thrifty offer. It hasn't officially dropped its bid for the company.

Ad Loading...


The bidding war for Dollar Thrifty has been a long-running affair. In April 2010, Hertz and Dollar Thrifty had a $1.2 billion deal. But Avis came up with a higher bid, and a takeover battle ensued that resulted in Dollar Thrifty shareholders rejecting the Hertz deal at a meeting in September.


Avis had been going through the regulatory process when Hertz came back in May with a higher offer.


On Friday, Dollar Thrifty's stock closed at $73.23 per share on the New York Stock Exchange, giving it a market capitalization of $2.1 billion.

More Industry

Photo of gray SUV plugged into public electric-vehicle charger in parking lot
Industryby Hannah MitchellJuly 21, 2026

World EV Adoption Set to Grow

A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.

Read More →
Bar chart of truck and SUV segments' weekly value change
Industryby StaffJuly 21, 2026

Black Book: Weekly Market Update

Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.

Read More →
laptop with blue car on screen on a shopping website, Clear Costs Convert
Industryby Lauren LawrenceJuly 21, 2026

Pricing Transparency Drives Purchase Consideration

An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.

Read More →
Ad Loading...
Bar graphic of used-car segment weekly change
Industryby StaffJuly 14, 2026

Black Book: Weekly Market Update

Used-vehicle market depreciation was the prevailing story in the wholesale market last week.

Read More →
Light-blue Fiat car parked on a sunny Chicago street
Industryby Hannah MitchellJuly 14, 2026

Smaller Is Looking Better

A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.

Read More →
man sitting at desk using calculator with charts in front of him, to-go coffee cup on desk, rising and falling data chart in front
Industryby Lauren LawrenceJuly 14, 2026

U.S. EV Market Slowly Stabilizes

U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.

Read More →
Ad Loading...
blue background, map of the world with connecting lights and an electric vehicle emblem in the middle
Industryby Lauren LawrenceJuly 8, 2026

Global EV Market Entering New Phase

Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.

Read More →
Bar chart showing week-over-week wholesale automotive price change
Industryby StaffJuly 7, 2026

Black Book Weekly Market Update

The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.

Read More →
Photo of Honda CR-V SUV on two-lane road next to roadside trees
Industryby Hannah MitchellJuly 1, 2026

Auto Affordability in Context

Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.

Read More →
Ad Loading...
Line chart of used-vehicle days to turn over past week
Industryby StaffJune 30, 2026

Black Book: Weekly Market Update

Automotive auction inventory increased last week, giving choosy bidders even more leeway.

Read More →