US car rental giant Hertz will acquire its former competitor Dollar Thrifty for $2.3 billion, the two companies announced on Monday.
In a joint statement, the two companies said their boards of directors had unanimously approved the transaction.
They said the combination of Hertz and Dollar Thrifty will create "a global, multi-brand rental car leader offering customers a full range of rental options through its strong premium and value brands."
According to the announcement, Hertz will pay Dollar Thrifty shareholders $87.50 per share in cash.
"We'll be a stronger global competitive player with a full range of rental options not only in the U.S. but in Europe and other markets given Dollar Thrifty's strong international presence," Hertz Chairman and Chief Executive Officer Mark Frissora said.