U.S. car rental major Hertz Global Holdings will acquire its rival Dollar Thrifty Automotive Group in a cash and stock deal valued at over $1 billion.

Both companies have presence in India and Hertz operates in as many as ten Indian cities, including New Delhi and Mumbai.

The two entities have entered into a definitive agreement whereby Hertz would acquire NYSE-listed Dollar Thrifty for a purchase price of $41 a share “in a mix of cash and Hertz common stock”, Hertz said in a statement.

Going by media reports, the transaction would be worth more than $1 billion.

The transaction would strengthen Hertz's presence in the leisure car rental market. “Dollar Thrifty also has a strong international presence, complementing our global footprint, which enables us to utilise a recognised brand to accelerate our leisure rental strategy in Europe and other markets,” Hertz Chairman and CEO Mark P. Frissora said. Other Indian cities where Hertz operates are: Ahmedabad, Jaipur, Chennai, Bangalore, Chandigarh, Hyderabad, Kolkata and Pune.

More In: Companies | Business