NEW YORK and GARDEN CITY, N.Y., Nov. 13 /PRNewswire/ -- Cendant Corporation
(NYSE: AVI) and Avis Group Holdings, Inc. (NYSE: CD) today announced that they
have entered into a definitive agreement for Cendant to acquire all of the
outstanding shares of Avis Group that are not currently owned by Cendant at a
price of $33.00 per share in cash. Approximately 25.6 million outstanding shares
of Avis Group common stock, and options to purchase an additional approximately
7.9 million Avis Group shares, are not owned by Cendant. Accordingly, the
transaction has an equity value of approximately $935 million, net of option
proceeds. The shares will be acquired at a price of $33.00 per share in a cash
merger pursuant to which Avis Group will be merged with an indirect wholly owned
subsidiary of Cendant. Upon completion of the transaction, Avis Group will
become a subsidiary of Cendant. The merger is conditioned upon, among other
things, approval of a majority of the votes cast by Avis Group stockholders who
are unaffiliated with Cendant and customary regulatory approvals. The
transaction is expected to close in the first quarter of 2001. "We expect this
transaction to be immediately accretive to Cendant's earnings," said Cendant
Chairman, President and Chief Executive Officer, Henry R. Silverman.
"Additionally we look forward to the combination with Avis Group to enhance both
our off-line and online travel strategies." "We're very pleased that our
successful business strategy has now resulted in a substantial increase in
shareholder value -- approximately 74% over the past year," said Avis Group
Chairman and Chief Executive Officer A. Barry Rand. "Over the past 12 months, we
have successfully transformed Avis Group into the leading comprehensive vehicle
management solutions provider with award-winning technology. We have
substantially strengthened our balance sheet and significantly improved our free
cash flow, while attaining our 13th consecutive quarter of EPS growth above 20%.
Now, we look forward to combining with Cendant, a company with significant
financial strength and broad travel industry assets." About Avis Group Holdings,
Inc. Avis Group Holdings, Inc. is one of the world's leading service and
information providers for comprehensive automotive transportation and vehicle
management solutions. Avis Group operates Avis Rent A Car, the world's second
largest general-use car rental business, with locations in the United States,
Canada, Australia, New Zealand and the Latin American Caribbean region; PHH
Arval, one of the world's leading vehicle management companies; and Wright
Express, the world's largest fleet card provider. For additional information and
news concerning Avis Group, please log onto the Avis web site at
http://www.avis.com. or call Company News on Call (800-758-5804, access code
#078975). About Cendant Corporation Cendant Corporation is a global provider of
real estate, travel and direct marketing related consumer and business services.
The Company's core competencies include building franchise systems, providing
outsourcing solutions and direct marketing. As a franchiser, Cendant is among
the world's leading franchisers of real estate brokerage offices, hotels, rental
car agencies, and tax preparation services. As a provider of outsourcing
solutions, Cendant is a major provider of mortgage services to consumers, the
global leader in employee relocation, and the world's largest vacation exchange
service. In direct marketing, Cendant provides access to insurance, travel,
shopping, auto, and other services primarily to customers of its affinity
partners. Other business units include NCP, the UK's largest private car park
operator, and WizCom, an information technology services provider. Headquartered
in New York, NY, the Company has approximately 28,000 employees and operates in
over 100 countries. More information about Cendant, its companies, brands and
current SEC filings may be obtained by visiting the Company's Web site at
http://www.cendant.com. or by calling 877-4INFO-CD (877-446-3623). Statements
about future results made in this release may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. These statements are based on current expectations and the current
economic environment. These statements are not guarantees of future performance.
Actual results could differ materially from those expressed or implied in the
forward-looking statements. Important assumptions and other important factors
that could cause actual results to differ materially from those in the
forward-looking statements are specified in Form 10-K for the year ended
December 31, 1999 for Avis Group and in Form 10-Q for the quarter ended June 30,
2000 for Cendant.
