According to the Complaint, Rent-A-Center is an American public furniture and electronics “rent-to-own” company based in Plano, Texas, offering name-brand products through flexible rental purchase agreements that allow customers to obtain ownership of the merchandise at the conclusion of an agreed upon rental period. The Company owns and operates approximately 2,400 stores in the United States, Mexico, Canada and Puerto Rico, and approximately 1,250 Acceptance Now kiosk locations in the United States and Puerto Rico. Rent-A-Center Franchising International, Inc., a wholly owned subsidiary of the Company, is a national franchiser of approximately 250 rent-to-own stores operating under the trade names of “Rent-A-Center,” “ColorTyme,” and “RimTyme.”
On June 18, 2018, the Company announced the Proposed Transaction, the acquisition of Rent-A-Center by Vintage Rodeo Parent, LLC (“Parent”), an affiliate of Vintage Capital Management, LLC (“Vintage Capital”). Under the terms of the Merger Agreement, Rent-A-Center stockholders will receive $15.00 in cash for each share of Rent-A-Center common stock, which represents a premium of approximately 49 percent over the Company’s closing stock price on October 30, 2017, immediately prior to the announcement that the Company's Board of Directors initiated a process to evaluate strategic and financial alternatives focused on maximizing stockholder value.
On July 16, 2018, Rent-A-Center filed a Proxy with the SEC in connection with the Proposed Transaction. The Proxy was furnished to the Company’s stockholders and solicits their votes in favor of the Proposed Transaction. The Complaint alleges that the Proxy misrepresents and/or omits material information that is necessary for the Company’s stockholders to make an informed decision concerning whether to vote in favor of the Proposed Transaction, in violation of Sections 14(a) and 20(a) of the Exchange Act.