Rent-A-Center Inc (RCII.O) said on Tuesday it terminated a deal to be acquired by Vintage Capital Management, as the buyout firm did not extend a deadline to close the transaction that is waiting for regulatory approval six months after being announced.
Shares of the rent-to-own furniture retailer fell 12 percent to $12.6 before the bell.
In June, Rent-A-Center agreed to be taken private by Vintage Capital in a $1.37 billion deal, including debt, following pressure from activist investors.
Rent-A-Center said it would not exercise its right to extend the deadline for the deal “in light of the current financial and operational performance of the company”.
Rent-A-Center’s profit and revenue surpassed analysts’ estimates in its latest reported quarter, driven by cost cuts.
The company said it would discuss its 2019 financial forecast later this week.
Under terms of the deal, Vintage Capital has to pay a reverse breakup fee of $126.5 million within three business days, Rent-A-Center said.
Vintage Capital was not immediately available for comment.
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