An Oxfordshire-based vehicle rental business has been taken over by a major rival in a deal worth £4m.

Pam Shears-Matthews, left, John Maynard, second left, and Sue Maynard of Target Vehicle Rental, with Nick Skillman, regional director of Northgate

Target Vehicle Rental, which has its head office in Banbury and 12 offices across the county as well as locations throughout the M40 corridor, has been bought by national operator Northgate.

All 100 staff, including the 40 at Banbury, will be kept on by the company, which will continue to be called Target. It is now looking to expand the operation throughout the South East.

New managing director Jim Noble said: "Target has filled a geographical gap for Northgate.

"We see a lot of growth potential in the area and we can take the business on to its next stage with the resources of a public limited company behind us."

Target was set up about 15 years ago by Peter, Sue and John Maynard, and Pam Shears-Matthews with just 75 vehicles.

It has built up the fleet to 1,200 which will now be added to the 42,000 operated by Darlington-based Northgate throughout the UK.

The Maynard family and Ms Shears-Matthews have stepped down following the deal and Mr Noble said they are considering retirement.

Mr Noble was formerly operations director and has been promoted to managing director.

Northgate allows businesses to remain independent and be responsible for their own profits.

The parent company provides technical, financial, information technology and marketing support.

Each company also operates the Norflex flexible rental system which allows customers to operate vehicles with no time or mileage limit, paying an agreed fee.

A Northgate spokesman said: "We did not have any coverage in the area in which Target operated. That was the main reason for making the approach."