An Orlando private equity firm has purchased lease-to-own business Rent-A-Center in a deal valued at more than $1 billion.
Vintage Capital Management put a bid in for the company on Friday: $15 per share, $1 per share above its previous offer. Rent-A-Center, based in Plano, Texas, said it accepted the bid on Monday.
Vintage already has invested in the rent-to-own business and is the controlling shareholder of Buddy's Home Furnishing, an Orlando-based competitor of Rent-A-Center. The private equity firm had offered to buy the rent-to-own chain in the fall for $13 per share and then $14 last week.
Rent-A-Center has been debating a sale in the last year. It also recently begun expanding its franchisee offerings, with a Tampa company, Impact RTO Holdings, amassing the single-largest chunk of franchised locations.
As of Monday morning, Rent-A-Centers stock prices had risen more than 22 percent to $14.73 per share. It closed on Friday at $12.03 per share.
The deal is valued at nearly $1.4 billion.