Rent-A-Center, a retailer that offers home furnishings, appliances, and electronics, on a lease-to-own basis, is planning to acquire digital lease-to-own provider Acima Holdings in a $1.65B cash and stock transaction.

Why should we care?
Rent-A-Center serves credit-challenged customers through its rent-to-own business model. The company, which operates through more than 1,900 stores, will use the capabilities from the Acima acquisition to help build a virtual lease-to-own platform. The move will help expand Rent-A-Center’s footprint beyond brick-and-mortar stores, and will allow the company to reach a broader set of retail partners. In a statement, the company suggested that the coronavirus pandemic has enhanced the business case to go omnichannel, as e-commerce grows and consumer credit tightens. Acima, established in 2013, is a profitable lease-to-own fintech company with a national presence. Its capabilities will be folded into Preferred Dynamix, Rent-A-Center’s digital platform. “The resulting set of fintech capabilities will support faster innovation, allowing us to bring aspirational brands to consumers across a broader set of e-commerce and retail partners,” Jason Hogg, executive vice president of Preferred Dynamix said.