The Aaron’s Co. has announced it entered into a definitive agreement for acquisition by fintech IQVentures Holdings for $10.10 per share in cash, or an enterprise value of $504 million.
The price represents a premium of 34% over the company’s closing share price of $7.54 on June 14, Aaron’s maintained, and a premium of 35.6% over its 90-day volume-weighted average share price.
Aaron’s board of directors unanimously approved the transaction, which the company expects to close by year’s end. Upon the transaction’s completion, Aaron’s will become a privately held company, and its common stock will no longer trade on the New York Stock Exchange. The company anticipates continuing operations under its existing brand names and will maintain its headquarters in Atlanta.
Aaron’s stated IQVentures is a proven fintech that provides market-driven solutions built on emerging technologies and beneficial shared services for the entities it acquires.
“We are pleased to announce this transaction with IQVentures, which delivers significant and immediate value to our shareholders,” said John Robinson, Aaron’s board chairman. “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. With the assistance of our financial and legal advisors, the board conducted a thorough review of our strategic options and ultimately determined that a sale to IQVentures represented the best way to maximize shareholder value.”
