From Garden City to the Garden State: Avis Will Move HQ to NJ

Cendant and Avis officials put an end to the speculation yesterday, shortly after the merger closed, by announcing that Avis would indeed relocate its home base here over the next 12-18 months. The car rental company will keep its WizCom information services division and other tech support functions in Garden City. Of 700 positions on Long Island, at least half will be moved. In the meantime, Avis has been granted an incentives package by the State of New Jersey that will amount to $2 million a year for the next 10 years.

"Avis has a long history on Long Island, says Robert Salerno, Avis' president, who will stay on as COO of Avis Rent A Car. "But merging our headquarters with Cendant will provide significant cross-marketing and cost-saving opportunities. Right now, we are committed to handling the transition with a great deal of sensitivity." Altogether, Avis has more than 20,000 employees in its car rental, fleet rental and fleet management operations worldwide.

Cendant has rebounded from the effects of an earnings inflation scandal that saw former chairman Walter Forbes and vice chairman Kirk Shelton resign three years ago -- they were formally indicted this week for what prosecutors are calling one of the biggest security frauds ever. The company, which has 2,000 employees in Parsippany, is a franchiser of such hotel chains as Days Inn, Ramada and Howard Johnson, and of such real estate brokerages as Coldwell Banker and Century 21.

Cendant had been a stakeholder in Avis to the tune of 82%. To buy the remaining 18%, Cendant is paying Avis shareholders $33 a share in cash, or a total of more than $935 million.