— Progressive Rentings, a rental car leasing firm, has announced plans to acquire $50 million in equity.
The transaction will provide the company with a significant increase in its value, according to a press release on Wednesday.
The company’s shares have climbed almost 20 percent this year.
The stock price is up nearly 60 percent in the last 12 months.
The acquisition will give the company a strong financial foundation to continue to invest in its operations, said Dan O’Brien, chairman and CEO of Progressive Rent.
Progressive Rent has seen significant growth in the past year, increasing revenue by nearly 80 percent from the prior year to $5.4 million in 2017.
It now has about 600 employees, including about 400 on its payroll, and is expanding to more locations in the coming years.
Progressive rents cars in many states, including Florida, Texas, Virginia, North Carolina, and the District of Columbia.
The firm has more than $100 million in assets under management.
The sale of the equity is subject to approval by the board of directors of the company, according the release.
Progressive said the acquisition will create a strategic alliance with a growing portfolio of vehicles, with a focus on leasing cars in the U.S. and overseas.
The companies’ financial strength comes from their combination of a highly skilled workforce and a strong corporate culture, the release said.
“As we build upon the strength of the vehicle business, we will continue to build upon our partnership with the state of Florida and its customers,” O’Brien said.
Progressive is in the process of acquiring a second car rental company, and will continue developing the services and brands of its car rental network, he said.