Verra Mobility Shares Rise After Reaching New Framework Agreement with Avis Budget Group

Dow Jones07-29 21:54

Shares of Verra Mobility rose after the smart mobility technology company said it reached a framework agreement with Avis Budget Group on a seven-year tolling and violations services contract.

The stock was nearly 30% to $5.42 in recent trading, but fell 76% since the start of the year.

Under the new agreement, Avis, a vehicle rental and mobility holding company, will be able to selectively perform certain activities internally, Verra said.

Verra Chief Executive Jon Keyser said re-engaging with Avis is a positive step that reflects the strength of Verra's differentiated technology platform and expertise in complex tolls and violations management for large vehicle fleets.

Financial terms for the deal were not disclosed but Verra said the new agreement is expected to be materially less favorable than their prior agreement with Avis.

Verra said the companies are working on finalizing the remaining operational terms and conditions.

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