To enhance its online business, Aaron’s, which both leases and retails a range of products including furniture, consumer electronics, home appliances and accessories, has acquired Dent-A-Med, which conducts business as The HELPcard and offers second-look finance programs for near-prime customers.
The company also announced the launch of Approve.Me, which provides a single application for shoppers seeking both credit approval and lease options.
The deals will support Aaron’s online efforts including the recently acquired Progressive operation.
Aaron’s stated that it expects what will become its HELPcard subsidiary to drive incremental revenue and earnings growth at Progressive. It offers retail partners, along with Progressive’s existing product and the new Approve.Me platform, one source for financing and leasing transactions for below prime consumers. In its operation, the HELPcard will benefit from Progressive’s proprietary technology, infrastructure, and financial capacity, Aaron’s noted.
The agreement calls for Aaron’s to acquire all of the outstanding stock of Dent-A-Med, Inc. for approximately $55 million in cash on hand and the assumption of $44 million in debt.
“The HELPcard and Approve.Me have significant strategic benefits for our business,” said John Robinson, Aaron’s CEO. “Our retail partners have been asking us for an integrated solution to serve customers who are between Progressive’s lease offering and major banks’ prime credit products. We believe these offerings will fill that gap by creating a ‘one-stop shop’ at the point of sale for our retail partners.”