Verra Mobility rallies after reaching new deal with Avis

Verra Mobility

29/07/2026 17:17

** Verra Mobility's VRRM.O shares up 25% to $5.23 on Weds after saying it reached a framework agreement with Avis Budget Group CAR.O on a new seven-year tolling and violations services contract
** VRRM shares on course for record daily pct gain
** Under the agreement, Avis will be able to selectively perform certain activities internally, VRRM said late Tues
** Financial terms not disclosed, but VRRM said new agreement expected to be materially less favorable than its prior agreement with the rental-car firm
** "Reengaging with ABG is a positive step forward for Verra Mobility that reflects the strength of our differentiated technology platform and our expertise in complex tolls and violations management for large vehicle fleets," CEO Jon Keyser said
** On May 27, VRRM's stock plunged 71% and hit a record low after receiving contract termination notice from Avis
** On June 1, Mesa, Arizona-based VRRM named Keyser interim CEO, replacing David Roberts after his 12 years of leadership, including taking it public in Oct 2018 after a SPAC merger
** All 8 analysts covering the stock rate it "hold"; median PT $7.50, per LSEG data 
     

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))