Hertz Global Holdings Inc. (NYSE: HTZ) has acquired the assets of Automoti Group Inc., an online marketplace for consumers to directly purchase used cars. No financial terms were disclosed. Hertz was acquired in a 2005 buyout by The Carlyle Group, Clayton Dubilier & Rice and Merrill Lynch Global Private Equity. The firms still hold a majority stake.
Hertz Global Holdings, Inc. (NYSE: HTZ) announced it has acquired the assets of Automoti Group, Inc., an online marketplace for consumers to directly purchase used cars at discounted prices. Automoti’s end-to-end solutions are currently utilized by the Hertz Rent2Buy program which enables consumers to rent a car for up to three days prior to purchase. Terms of the acquisition were not disclosed.
Mark P. Frissora, Chairman and Chief Executive Officer of Hertz, commenting on the acquisition, said, “A key element to Hertz’s reengineering has been its fleet sales, with an overall strategy of diversifying the sales channels used to sell vehicles. Automoti.com provides user-friendly technology that will enable Hertz to leverage an e-commerce platform to further develop our Rent2Buy program. By acquiring Automoti’s technology, we will now own the best online car sales system, enabling Hertz to pre-sell vehicles while still on rent which will increase the revenue earned per vehicle sold.”
The transaction provides Hertz with the rights to the Automoti website and technology platform and intellectual and tangible property pertaining to the platform.
John Thomas, Executive Vice President, Global Supply Chain Management of Hertz, said, “Hertz’s newly developed Rent2Buy program is a fast-growing retail sales channel designed to be customer friendly, with a 3-day, try-before-you-buy test drive. Through Hertz Rent2Buy, we can extend our product offering by providing customers with a financially attractive solution for purchasing late model used vehicles in a simple, streamlined way.”
Car buyers interested in a quality, used vehicle simply need to select and reserve a vehicle of their choice for up to three days at www.hertzrent2buy.com. If the customer decides to buy the car, they keep it, complete the purchase process and the rental cost is credited against the purchase price of the car. If the customer decides not to buy the car, they return it to the renting location and the transaction is treated like a standard rental. Hertz Rent2Buy provides customers with substantial savings off of retail prices and a no hassle, one price buying experience. Hertz Rent2Buy is currently available in 8 states: Alaska, California, Florida, Hawaii, Illinois, Massachusetts, New Jersey, and New York, the Company plans to quickly expand the program to other states in the coming months.
The Hertz Corporation (www.hertz.com), a subsidiary of Hertz Global Holdings, Inc. (NYSE: HTZ), is the world’s largest general use car rental brand, operating from approximately 8,000 locations in 145 countries worldwide. Hertz is the number one airport car rental brand in the U.S. and at 42 major airports in Europe, operating both corporate and licensee locations in cities and airports in North America, Europe, Latin America, Australia and New Zealand. In addition, the Company has licensee locations in cities and airports in Africa, Asia, and the Middle East. Product and service initiatives such as Hertz #1 Club Gold®, NeverLost® customized, onboard navigation systems, SIRIUS Satellite Radio, and unique cars and SUVs offered through the company’s Prestige, Fun and Green Collections, set Hertz apart from the competition. In 2008, the Company launched Connect by Hertz, entering the global car sharing market in London, New York City and Paris. Hertz also operates one of the world’s largest equipment rental businesses, Hertz Equipment Rental Corporation, offering a diverse line of equipment, including tools and supplies, as well as new and used equipment for sale, to customers ranging from major industrial companies to local contractors and consumers from approximately 350 branches in the United States, Canada, China, France and Spain.