Avis company buys ebookers for £209m

Online travel company ebookers is to be bought by the owner of the Avis car rental business after agreeing a deal today worth £209m (€302.6).

US-based travel and property business Cendant said the acquisition would give it a major foothold in Europe, allowing it to link its hotels and car rental businesses to the long-haul flights offered by ebookers.

Founder Dinesh Dhamija will resign as chief executive after the sale and receive a £700,000 (€1bn) pay-off, as well as proceeds from a trust fund in his name and which owns more than 40% of the shares.

Ebookers, founded in 1999, has seen its stock more than double since it first announced it was involved in takeover talks three months ago.