Rent-A-Center Inc. on Aug. 14 completed its acquisition of online rent-to-own service provider C/C Financial Corp., which does business as Merchants Preferred Lease-Purchase Services.
The cash-and-stock deal is worth about $47.5 million.
The furniture and electronics rent-to-own company said it updated its annual revenue, net debt and net debt to adjusted EBITDA guidance to reflect the impact of this acquisition.
It now expects revenue for its Acceptance Now segment, where it will include Merchants Preferred, to be in the range of $725 million to $745 million, compared to the previous guidance range of $700 million to $715 million.
Meanwhile, Rent-A-Center expects net debt to come in between $225 million and $195 million, up from $195 million to $165 million. It also expects net debt to adjusted EBITDA to be 1.0x to 0.7x, up from 0.9x to 0.6x.
As part of the transaction, Merchants Preferred CEO Joe Corona has now joined Rent-A-Center and will continue to lead the virtual strategy.