Dec 20 (Reuters) - U.S. retailer Rent-A-Center Inc said on Sunday it would buy Acima Holdings LLC in a cash-and-stock deal valued at $1.65 billion.
The deal includes $1.273 billion in cash and about 10.8 million shares of Rent-A-Center common stock currently valued at $377 million, the company said in a statement.
Rent-A-Center operates a “rent-to-own” business that provides furniture, electronics and other goods to customers, along the option of eventually purchasing them.
Acima has more than 15,000 retail partner locations and e-commerce platforms, and is expected to generate in 2020 revenue of about $1.25 billion and adjusted earnings before interest, taxes depreciation and amortization of $225 million, Rent-A-Center said.
The company said it had obtained $1.825 billion in debt financing from J.P. Morgan Securities LLC, Credit Suisse and HSBC Securities Inc to fund the deal.
The acquisition is expected to close in the first half of 2021.
Reporting by Ann Maria Shibu in Bengaluru; Editing by Aditya Soni