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

Kia Niro SUV in gold color parked outdoors
Industryby Hannah MitchellSeptember 1, 2026

Kia Closes Out Summer With a Bang

Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.

Read More →
Outside of Auto Park Ford dealership
Industryby Lauren LawrenceSeptember 1, 2026

Indiana Dealership Changes Hands

A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.

Read More →
Three men standing in front of two classic cars handing off gift.
Industryby Hannah MitchellAugust 25, 2026

Texas Dealership No Longer in the Family

The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.

Read More →
Ad Loading...
Outside of modern car dealership “Genesis of San Bruno
Industryby Lauren LawrenceAugust 25, 2026

Genesis Grows California Presence

The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.

Read More →
Red Honda Civic hybrid sedan on two lane road with green hills in background
Industryby Hannah MitchellAugust 21, 2026

August Auto Sales a Mixed Bag

An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.

Read More →
EV charger inserted into dark-colored car port
Industryby Hannah MitchellAugust 18, 2026

EV Market Humming Along

July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.

Read More →
Ad Loading...
car in background with hand giving a thumbs up in front
Industryby Lauren LawrenceAugust 14, 2026

Auto Loan Delinquency Rates Stabilize

Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.

Read More →
blue sky, yellow and orange rollercoaster with riders going up an incline
Industryby Lauren LawrenceAugust 12, 2026

EV Sales Recover in Q2

The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.

Read More →
Photo of blue Toyota Prius parked next to body of water with city skyline in background
Industryby Hannah MitchellAugust 5, 2026

The Cheapest Hybrids to Fuel

The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.

Read More →
Ad Loading...
white SUV parked in front of a body of water with a gray sky background
Industryby Lauren LawrenceAugust 5, 2026

Hybrids and SUVs Gaining Ground

The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.

Read More →