Rent-A-Center to buy Acima Holdings in $1.65B deal

Dec. 20, 2020 9:39 PM ETRent-A-Center, Inc. (RCII)By: Carl Surran, SA News Editor1 Comment
  • Rent-A-Center (NASDAQ:RCII) agrees to acquire online lease-to-own provider Acima Holdings in a cash-and-stock deal valued at $1.65B.
  • Total consideration consists of $1.27B in cash and ~10.8M Rent-A-Center common shares currently valued at $377M.
  • Acima, which provides financing for rent-to-own customers, operates with partners in 15K-plus retail locations and e-commerce platforms, and expected to tally $1.25B in revenue in 2020.
  • "We looked at the fintech industry [and] Acima was by far and away the best platform and best leadership team that we came across, and it was the most complementary from a tech standpoint to our business," says Jason Hogg, Executive VP of Rent-A-Center's Preferred Dynamix unit.
  • Rent-A-Center is "a mediocre company at an excellent price," Daniel Jones writes in a bullish analysis recently published on Seeking Alpha.
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