Flixbus to acquire iconic long-distance bus company Greyhound, expanding its low-cost coach offering into the United States, the German travel company said Thursday.

Flixbus will pay $172 million to Firstgroup, the British owner of Greyhound Lines, which serves 2,400 destinations in North America, carrying almost 16 million passengers a year.

The sale marks FirstGroup's exit from its international operations. Earlier this year, it sold its U.S. school bus and transit business to private-equity firm EQT to focus on its United Kingdom bus and train operations.

FirstGroup will receive a total of $172 million in cash from the deal, the company said in a statement on Thursday, a portion of which will be used to pay down Greyhound's liabilities and leases.

It will retain some properties and legacy liabilities of Greyhound, including pension and self-insurance.

Dallas-based Greyhound, a household name in North America since it was founded in 1914, was put up for sale in May 2019 as it battled with growing pressure from low-cost airlines.

FlixMobility, owner of European intercity bus service FlixBus, said the purchase would help marry its technology and shared mobility expertise with Greyhound's nationwide presence.

Greyhound has a fleet of 1,300 vehicles and 2,400 employees, providing services connecting 1,750 destinations across North America.

The deal will help FirstGroup cut its adjusted net debt from to 10 million to 20 million pounds ($13.81 million to $27.61 million), about 80 million to 90 million pounds lower than an earlier forecast.