Avis Budget Group Inc. has acquired 100% ownership of its licensee in Brazil by purchasing equity and debt interests in the business for approximately $40 million.

This acquisition will enable the company to significantly increase the presence of its Avis and Budget brands in the Brazilian car rental market — capturing a larger share of Brazil's domestic, international-inbound and international-outbound vehicle rentals, according to the company.

"The Brazilian car rental market has grown substantially over the past several years and presents a great opportunity for our company to expand its global footprint, consistent with our core strategic initiatives," said Ronald L. Nelson, Avis Budget Group chairman and CEO. "We plan to expand our brands' presence significantly over the next several years to serve the needs of residents, local businesses, commercial travelers and vacationers in Brazil."

Avis and Budget provide vehicle leasing and vehicle rental services with a fleet of more than 7,000 cars in Brazil and operate at more than 50 rental locations, including at Congonhas and Guarulhos airports in Sao Paulo and at Santos Dumont and Galeão airports in Rio de Janeiro.

Brazil is also a significant source of international-outbound business, particularly to the United States, Argentina, Portugal and France, according to Avis Budget.