Rent-A-Center Terminates Vintage Capital Merger Deal Over Technicality

A Delaware court ruled earlier this month that retailer Rent-A-Center would not have to complete a $1.36 billion merger deal with private equity firm Vintage Capital Management, Reuters reports. Both parties knew the merge could be a lengthy process due to Vintage owning a competing chain of rent-to-own retail stores, so it was agreed that if the deal was not approved by Dec. 17, 2018, either party could give notice that it was unilaterally extending the contract for an additional 90 days. Furthermore, the contract stated that if no notice was given, either side could terminate the deal at will and Rent-A-Center would receive a $126.9 million termination fee guaranteed by Vintage. As both sides worked together to try and close the deal, the Dec. 17 date passed without any notice of extension being sent. The following day Rent-A-Center terminated the deal and was subsequently sued by Vintage. Read the opinion by Delaware Chancery Judge Sam Glasscock III.

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