Why Rent-A-Center Stock Is Rallying Today
Shares of Rent-A-Center (NASDAQ: RCII) jumped more than 10% by 10:45 p.m. EST on Monday. Driving up the stock of the lease-to-own provider was the expansion of its fintech platform via the acquisition of Acima.
Rent-A-Center is paying $1.65 billion in cash and stock to acquire Acima, a leading virtual lease-to-own solution provider. Acima operates in more than 15,000 active retail partner locations and e-commerce platforms. The company is on track to generate $1.25 billion of revenue and $225 million of adjusted EBITDA in 2020, which is a significant increase from 2016 when it only produced $97 million in revenue. The deal will boost Rent-A-Center's pro forma numbers to $4.1 billion in revenue and $540 million in adjusted EBITDA.
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Source Fool.com
