Rental car company Hertz Global Holdings Inc. said Thursday that it has completed an acquisition of fleet leasing firm Donlen Corp.
Hertz said the purchase was financed with $177 million in cash and the assumption of $770 million of Donlen's fleet debt.
Hertz said the acquisition gives it a position in the long-term car, truck and equipment leasing market as well as fleet management, which will give it a more stable revenue stream.
Donlen, which is privately held and based in Northbrook, Ill., leases and manages more than 144,000 vehicles in the United States, Canada and Mexico. In 2010, it had gross billlings of about $920 million and revenue of about $350 million, Hertz said.
The purchase is immediately accretive to Hertz's earnings.
Shares of Hertz fell 11 cents to end trading Thursday at $11.09 and rose 5 cents in after-hours trading.