Rent-A-Center Terminates Merger Agreement - Quick Facts

(RTTNews) - Rent-A-Center, Inc. (RCII) announced that the company has terminated the agreement and plan of merger by and among the company and certain affiliates of Vintage Capital Management, LLC. Rent-A-Center did not receive an extension notice from Vintage Capital as of December 17, 2018, which was the deadline set forth in the merger agreement for either party to provide notice to the other of its election to extend the end date in the merger agreement to March 17, 2019. In light of the current financial and operational performance of the company, the Board of Rent-A-Center determined not to exercise its right to extend the end date and instead elected to exercise the company's right to terminate the merger agreement.

Rent-A-Center notified Vintage Capital of the company's termination of the merger agreement and noted Vintage Capital's obligation to pay the company a reverse breakup fee of $126.5 million within three business days.