The Aaron's Company stock rallies on $504M deal to go private
The Aaron's Company (NYSE:AAN) on Monday reported that, it had agreed to be acquired by fintech organization IQVentures Holdings, for $10.10 per share in cash, or an enterprise value of about $504 million, sending shares up in early trade.
Shares of the lease-to-own retailer (AAN) rose 31.56% to $9.92.
The price represents a premium of 34.0% over the company's closing share price of $7.54 on June 14.
"We are pleased to announce this transaction with IQVentures, which delivers significant and immediate value to our shareholders," said John W. Robinson III, Chairman of the Board of The Aaron's Company in a statement.
"While we have performed well in a challenging operating environment, our Board has consistently evaluated the company's standalone plan against other strategic opportunities, including recently engaging with a range of potential partners."
The transaction was unanimously approved by the Board of Directors of The Aaron's Company and is expected to close by the end of the year, it said.
Upon completion of the deal, The Aaron's Company (AAN) will become a privately held company, and it is expected that it will continue to operate under its existing brand names and will maintain its headquarters in Atlanta, GA.