After beginning discussions last November, the companies approved the deal on April 25, according to newspaper.
Hertz plans to keep the Dollar and Thrifty brands. The acquisition is “really about having a multi-brand strategy in the leisure segment,” said Mark P. Frissora, Hertz chairman and CEO.
Buying Dollar Thrifty will help Hertz better use its fleet, give it a foothold in the mid-tier car rental market, increase its locations outside airports and let it push deeper into Europe, Frissora said.
According to the newspaper’s account, Hertz currently uses about 95 percent of its fleet during the week but only 30 percent to 40 percent during the weekend, he said. Dollar Thrifty, by contrast, uses most of its fleet during the weekend, when leisure travelers are most likely to rent, he said. The companies plan to combine fleets immediately.