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Sunday, Sep 23, 2018
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Private Florida firm buys Rent-A-Center in $1 billion deal

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.

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