The Aaron's Company, Inc. (NYSE: AAN) ("The Aaron's Company" or the "Company") today announced that it has entered into a definitive agreement to be acquired by IQVentures Holdings, LLC ("IQVentures"), a leading fintech organization, for $10.10 per share in cash, or an enterprise value of approximately $504 million. The price represents a premium of 34.0% over the Company's closing share price of $7.54 on June 14, 2024 and a premium of 35.6% over the Company's 90-day volume-weighted average share price.

"We are pleased to announce this transaction with IQVentures, which delivers significant and immediate value to our shareholders," said John W. Robinson III, Chairman of the Board of The Aaron's Company. "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."

"We believe that IQVentures' resources and financial services expertise will help the Company achieve its long-term potential," said Douglas Lindsay, Chief Executive Officer of The Aaron's Company. "Together with IQVentures, The Aaron's Company will be better positioned to accelerate its omni-channel strategy and operational efficiency initiatives, all while continuing to enhance our customers' lives by providing easy access to high quality products through affordable lease and retail purchase options."

IQVentures is a proven fintech leader that provides intelligent, market-driven solutions built on the latest emerging technologies and beneficial shared services for the entities it acquires. IQVentures has a demonstrated track record of value creation, and expertise in customer management, with a deep understanding of The Aaron's Company's core customer base.

IQVentures President Cory Miller stated, "We admire The Aaron's Company's industry-leading position, and we look forward to applying our knowledge and resources to better serve its customers. Douglas and his team have transformed the Company over the past few years, and we are excited to build on that transformation and work together to continue evolving and growing the business." 

Transaction Details

The transaction was unanimously approved by the Board of Directors of The Aaron's Company and is expected to close by the end of the year, subject to shareholder approval, regulatory approval and other customary closing conditions. The transaction is not subject to a financing condition.

Upon completion of the transaction, The Aaron's Company will become a privately held company, and its common stock will no longer be traded on NYSE.

Following the closing of the transaction, it is expected that The Aaron's Company will continue to operate under its existing brand names and will maintain its headquarters in Atlanta, GA.

For further information regarding the terms and conditions contained in the definitive transaction agreement, please see The Aaron's Company's Current Report on Form 8-K, which will be filed with the U.S. Securities and Exchange Commission in connection with the announcement of the transaction.

Advisors

J.P. Morgan Securities LLC is serving as exclusive financial advisor to The Aaron's Company, and Jones Day is serving as legal counsel. Stephens Inc. is serving as exclusive financial advisor to IQVentures, and King & Spalding LLP is serving as legal counsel.