Europcar has acquired low-cost European rival Goldcar in a €550 million deal.

Goldcar is one of Europe’s largest low-cost car rental company with a fleet of more than 50,000 vehicles across nearly 90 destinations.

Europcar said the acquisition will help it become a “major player” in the European low-cost segment.

“The acquisition of Goldcar will create value for the Europcar Group as it will strengthen the Group’s expertise and know-how in low cost operations and will therefore significantly improve the revenue growth prospects of Europcar’s low cost business unit,” the group said in a statement.

“This strategic move is fully in line with our 2020 Ambition and boosts our confidence in our ability to deliver the targets we announced in October 2016 of reaching at least €3 billion of annual revenue and an Adjusted Corporate EBITDA margin at the Group level of at least 14% by the end of 2020.”

In 2016, Goldcar generated full-year revenue of €240 million and an adjusted corporate Ebitda of some €48 million.

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