Although regulatory clearance is still outstanding in some European countries, the deal gives Avis Europe the rights to use the Budget Rent a Car trademark and name, together with the existing Budget licensee agreements and royalty streams throughout Europe, the Middle East and Africa.
It will pay an aggregate purchase price of $21 million (about £13 million) and will also assume additionally net debt of some $8 million (about £4.9 million), which broadly equates to its fleet assets.
A further $6.5 million (about £4 million) will be paid on completion of the acquisition in France, which is subject to a separate agreement. This should be completed by the end of the month.
Regulatory clearances remain outstanding in some countries and where necessary the relevant country has been excluded from the first part of the deal. As previously disclosed the acquisition is expected to have an impact on earnings in the first full year following completion.
Avis Europe group chief executive Mark McCafferty said: 'In recent years the potential of the Budget brand has not been fully exploited due to constraints on the business.
'Our investment plans for both Budget and Avis - two of the leading global car rental brands - provide significant growth opportunities for our new car rental group. The next six to nine months will be spent stabilising and integrating the Budget business, followed by a revitalisation of the brand and the opportunity to take it to new territories.
'The combined group will be in an excellent position to take advantage of an economic recovery, when it comes.'