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Zipcar enters into agreement with Avancar

ABR Staff Writer Published 05 January 2011

Zipcar, a car sharing service, has entered into agreement with Catalunya Carsharing, known as Avancar, to extend its option to increase ownership to a majority holding through 31 December 2011.

In addition, Zipcar provided a monetary loan to Avancar, which is convertible into equity if Zipcar chooses to exercise the option.

The agreement is an extension of Zipcar's initial equity investment for a minority ownership stake in Avancar, which took place in December 2009.

Zipcar chairman and CEO Scott Griffith said in addition to their recent acquisition of Streetcar, the leading car sharing service in the UK, the extension of their option with Avancar positions them to expand the international reach and provides them with increased access to key strategic global markets.

"Just like we've seen in North America, in this difficult global economy urban dwellers in Europe are looking for smart ways to save money," Griffith said.

"Our goal is to bring the economic and environmental benefits of car sharing to more and more Europeans - in fact independent market research firm Frost and Sullivan estimates over 5 million potential car sharing consumers in Europe."