Rent-A-Center To Buy Acima In $1.65 Bln Cash And Stock Deal

(RTTNews) - Rent-A-Center Inc. (RCII) agreed to buy Acima Holdings LLC, a provider of virtual lease-to-own solutions, in $1.65 billion cash and stock deal.

Total consideration consists of $1.273 billion in cash and about 10.8 million shares of Rent-A-Center common stock currently valued at $377 million.

Rent-A-Center expects to close the deal in the first half of 2021.

Rent-A-Center said it has obtained $1.825 billion in debt financing commitments from J.P. Morgan Securities LLC, Credit Suisse and HSBC Securities (USA) Inc., in connection with the transaction.

Acima operates in more than 15,000 active retail partner locations and e-commerce platforms with about $1.25 billion in revenue and $225 million in adjusted EBITDA expected for 2020.