PARSIPPANY, N.J., and CAMBRIDGE, Mass. -

Avis Budget Group said Wednesday morning that it will buy the car-sharing network Zipcar for roughly $500 million in cash. The deal is expected to be finished by spring, but it first must gain approval by Zipcar shareholders and meet other customary closing conditions.

Both companies’ respective boards of directors unanimously approved the deal. Additionally, Avis announced that Zipcar shareholders representing nearly a third of the outstanding common stock say they plan on voting their shares in support of the deal.

“By combining with Zipcar, we will significantly increase our growth potential, both in the United States and internationally, and will position our company to better serve a greater variety of consumer and commercial transportation needs,” said Ronald Nelson, Avis Budget Group chairman and chief executive officer.

“We see car sharing as highly complementary to traditional car rental, with rapid growth potential and representing a scalable opportunity for us as a combined company,” he continued. “We expect to apply Avis Budget's experience and efficiencies of fleet management with Zipcar's proven, customer-friendly technology to accelerate the growth of the Zipcar brand and to provide more options for Zipsters in more places. We also expect to leverage Zipcar's technology to expand mobility solutions under the Avis and Budget brands.”

Avis said it will likely pull in annual synergies between $50 million to $70 million from the purchase.  Once the deal is done, Zipcar will be an Avis subsidiary and will move forward with its plans for new headquarters in Boston.  

Avis also expects that key management personnel at Zipcar, including chairman and CEO Scott Griffith and president and chief operation officer Mark Norman, will stay on to manage day-to-day operations.

“We are delighted to announce our intention to join the Avis Budget Group family of companies, and we believe this combination is a win across the board for our members, shareholders and employees.  We will be well positioned to accelerate enhancements to the Zipcar member experience with more offers and additional services as well as an expanded network of locations,” Griffith said.

“As the leading global provider of car sharing services, with a brand that is synonymous with the category, we remain committed to the values and vision that have driven us forward for many years, grounded by our passion for delivering a superior experience to every member for every trip, every day.  By combining Zipcar's expertise in on-demand mobility with Avis Budget Group's expertise in global fleet operations and vast global network, we will be able to accelerate the revolution we began in personal mobility,” he continued.