Rent-A-Center To Buy Most Assets Of Merchants Preferred For About $47.5 Mln

(RTTNews) - Rent-A-Center, Inc. (RCII) announced Monday that it has agreed to acquire substantially all of the assets of C/C Financial Corp. dba Merchants Preferred, a nationwide provider of virtual rent-to-own services.

The total consideration of the deal consists of $28 million in cash and a minimum of 701,918 shares of Rent-A-Center common stock. The deal is valued at about $47.5 million, based on Rent-A-Center's closing stock price on July 12 of $27.83.

The acquisition of Merchants Preferred has been unanimously approved by Rent-A-Center's Board of Directors and is subject to customary closing conditions. The Company expects the acquisition to close in the third quarter. The impact to 2019 earnings from the acquisition is not expected to be material.