Hertz Agrees To Buy Donlen Corp.

Hertz Global Holdings Inc., awaiting regulatory approval to acquire Dollar Thrifty Automotive Group Inc., said it agreed to buy Donlen Corp. for $250 million to expand its car, truck, and equipment-leasing services.

The transaction also includes the assumption of about $680 million of Donlen's debt outstanding, for a total value of about $930 million, according to a Hertz statement issued July 17.

Hertz will continue to pursue Dollar Thrifty as it seeks regulatory approval to acquire Donlen, a Hertz spokesman said yesterday. Hertz, the largest publicly traded rental-car company, offered to buy Dollar Thrifty in May.

Hertz said on July 11 it extended the expiration date of its $70.97-a-share offer for Dollar Thrifty by one month to Aug. 5, giving U.S. regulators more time to decide whether to allow a merger.

Hertz, which made an offer now valued at $2.05 billion for Dollar Thrifty on May 9, said 1.01 million Dollar Thrifty shares have been tendered through the offer, which began May 24 and was scheduled to expire July 8.

Hertz had about $1.37 billion in cash and cash equivalents on March 31, according to its first-quarter earnings report.

Donlen, based in Northbrook, Illinois, leases and manages more than 144,000 vehicles in the U.S., Canada, and Mexico, according to the statement. It's primarily a vehicle-financing and fleet-management business, Hertz said in the statement.

Acquiring Donlen gives Hertz "immediate leadership" in long-term "vehicle and equipment leasing and fleet management for corporate clients," Chief Executive Officer Mark Frissora, said in the release. "The integration of Donlen gives Hertz a yearly and multi-year offering that complements our hourly, daily, and monthly car sharing and car rental options."

The deal has been approved by the boards of both companies and Donlen's stockholders and may be completed during the third quarter, Hertz said.

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