Posted on April 26, 2010 by Fiona Hilliard

Dollar Thrifty as we know it is no more. US car rental giant Hertz Global Holdings Inc has just announced that it is snapping up its rival car rental company for a cool $1.2 billion. Combined,  the companies plan to compete even more effectively and efficiently against other multi-brand car rental companies.

The deal sees Hertz maximizing its hold across the US, with just one publicly listed rival car rental company now standing in its way in the form of Avis Budget. The US car rental industry is welcoming the news, which it sees as a positive signal that the industry is recovering from the global economic downturn. The car rental sector has also been buoyed by recent business travel trends and an upswing in the used car rental market.

Commenting on the take-over, Hertz Chief Executive Mark Frissora had this to say:  “Dollar Thrifty also has a strong international presence, complementing our global footprint, which enables us to utilize a recognised brand to accelerate our leisure rental strategy in Europe and other markets.”

So what does the buy out mean for the consumers?

Once the deal closes, Dollar Thrifty will become a wholly owned unit of Hertz. Any future bookings with Dollar Thrifty will be honoured by Hertz Global Holdings.

The deal means Hertz will add another 1550 locations, increasing its coverage to a total of 9,800 locations.  .

Dollar Thrifty’s President and Chief Executive officer Scott L. Thompson  is optimistic about the move:  “The combination of Dollar Thrifty and a larger company like Hertz will provide Dollar Thrifty with greater resources and the technology to expand our value focused leisure brands.”