Avis Budget Group (NYSE:CAR) is acquiring ZipCar Inc (NASDAQ:ZIP) for $500 million in an effort to gain entry into the rapidly growing car sharing market in the US. The all-cash offer of $12.25 per share represents a premium of 49% to ZipCar’s closing price Monday. Avis is looking to save from $50-$70 million in annual synergies and the deal is expected to contribute to earnings from the second year onwards.
Sony (NYSE:SNE) has stopped production of its popular gaming console PlayStation 2, though games will continue to be produced for the device, says CBS News. PlayStation 2 ranks as the second best selling console of all time with more than 150 million units sold across the globe since 2000. Die-hard Playstation fans may seek consolation from rumours that Sony now plans to launch its next-generation console, the PlayStation 4.
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Bank of America (NYSE:BAC) may consider redeeming Warren Buffett’s holding of preferred stock worth $5 billion issued to him during a difficult time back in 2011. The preferred stock carries a dividend of 6%, which is expensive considering the average yield on the bank’s long-term debt as per the most recent quarter is only about 3%. The buyback would cost $250 million, but would generate savings of $300 million a year and would make sense considering the bank is now on a much more sound footing. Its shares have doubled over 2012 and deposits have poured in.
CBIZ Inc (NYSE:CBZ), which helps clients better manage their finances and employees, has acquired unit Payroll Control Systems From Diversified Industries Inc for an undisclosed amount. The acquisition will enhance CBIZ annualised revenue by $6 million and at 37 employees. Payroll Control Systems is a provider of payroll-related time, labor and human resources solutions to small and mid-sized customers across America.
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