Verra Mobility has reached an agreement with Avis Budget Group to resume its fleet management solutions, sending Verra shares up more than 23% in after-hours trading. The new contract allows Avis to perform certain functions in-house rather than relying exclusively on Verra's services, and Verra acknowledged that the terms are expected to be materially less favorable compared to the prior agreement. Avis had ended the relationship in May, representing 10% of Verra's total sales, which forced Verra to slash its full-year earnings outlook and led to a share price decline of as much as 76% since the termination. CEO Jon Keyser called the reengagement a positive step reflecting the strength of Verra's technology platform in tolls and violations management for large vehicle fleets.
Verra Mobility CorpResumed contract with Avis, restoring a key revenue source despite less favorable terms.
Avis Budget Group IncAvis renegotiated contract on less favorable terms, reducing reliance on Verra's services.