German mobility provider FlixMobility, which runs Europe’s FlixBus and FlixTrain services, has acquired Greyhound Lines Inc., the largest provider of long-distance bus services in the United States.

FlixMobility bought Greyhound from British firm FirstGroup for $172 million, with $140 million paid initially and $32 million to be paid in installments over 18 months, through its wholly owned subsidiary Neptune Holding. The sale includes Greyhound’s vehicle fleet, trademarks and “certain other” assets and liabilities, according to a financial release from FirstGroup.

The FlixBus Global network serves more than 2,500 destinations in 36 countries outside of the U.S., while Greyhound currently operates around 2,400 destinations across North America and serves nearly 16 million passengers a year, according to FlixMobility.

FlixMobility said the acquisition will help the company realize its vision to offer sustainable and affordable travel around the globe at a time when people are showing interest in alternatives to individual car usage to reduce their carbon footprint.

“A compelling offering will draw significantly more travelers away from private cars to shared intercity bus mobility,” FlixMobility founder and co-CEO Andre Schwammlein said in a statement. “Together, FlixBus and Greyhound will be better able to meet this increased demand.”

Jochen Engert, founder and co-CEO of FlixMobility, in a statement added: “The continuous expansion of our services through partnerships and acquisitions has always been an integral part of our growth strategy to build our global presence. The acquisition of Greyhound is a major step forward in the U.S.”

FirstGroup is the U.K.’s second-largest regional bus operator and also holds government contracts to operate rail services on several lines, as well as open access trains.

In 2018, FirstGroup blamed a £327 million loss on fierce competition for Greyhound’s intercity services from increasing capacity on low-cost U.S. airlines.