Daimler to buy car-leasing firm Athlon for 1.1 bn euros

German auto maker Daimler said Friday it plans to acquire the Dutch car-leasing specialist Athlon for 1.1 billion euros ($1.2 billion).

"Daimler Financial Services ... signed an agreement to purchase Athlon Car Lease International for 1.1 billion euros from the Dutch De Lage Landen group, a subsidiary of Rabobank," Daimler said in a statement.

"Fleet management is a growth market and this acquisition of a strongly positioned and innovative fleet management company is a key step for us in becoming a leading fleet management services provider," said Daimler's finance chief Bodo Uebber.

"It also allows us to enhance fleets with Daimler's products and mobility offer."

Daimler said it would its fleet operations would operate under the Athlon brand in future.

"As a result of this strategic acquisition, Daimler Financial Services strengthens its foothold in Europe with a fleet management portfolio of approximately 340,000 passenger cars and vans," the statement said.

Athlon chief executive Frans Janssen said "the merging of Athlon and Daimler, two strong innovative brands, will positively contribute to our customers' ability to access an extended product and service range across Europe."

The deal was subject to the necessary regulatory approvals and was expected closed in the fourth calendar quarter of 2016, Daimler said.