Weeks after settling litigation related to a purchase deal, Rent-A-Center has entered into a definitive agreement to acquire substantially all of the assets of C/C Financial Corp., which does business as Merchants Preferred, a nationwide provider of virtual rent-to-own services.
Set to close in the third quarter, the acquisition consideration consists of $28 million in cash and a minimum of 701,918 shares of Rent-A-Center common stock, with the deal valued at $47.5 million in total. Rent-A-Center stated that it does not expect the acquisition to materially impact its 2019 earnings.
Mitch Fadel, Rent-A-Center CEO, said, “The success and trajectory of our strategic plan have enabled us to focus on growing our business. The addition of the Merchants Preferred technology platform and its approximately 2,500 locations enables us to accelerate our expansion plans with respect to the company’s virtual rent-to-own capabilities by at least 18 months. We are also excited to add the capabilities of the experienced Merchants Preferred management team. This acquisition positions us for growth and differentiates us from competitors, allowing us to offer both virtual and staffed solutions to our retail partners.”
In April, Rent-A-Center agreed to settle litigation with Vintage Capital Management and B. Riley Financial relating to the company’s termination of an agreement and plan of merger with affiliates of Vintage Capital.