Aaron’s Company, Inc. shares are surging after the lease-to-own retailer entered into a definitive agreement to be acquired by the fintech organization IQVentures Holdings, LLC.

IQVentures will acquire the company 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.

“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,” said Chairman John W. Robinson III.

The transaction is expected to close by the end of the year, subject to shareholder approval, regulatory approval and other customary closing conditions.

After the closing of the transaction, the Aaron’s Company will become a privately held company, and its common stock will no longer be traded on NYSE.

The Aaron’s Company will continue to operate under its existing brand names and will maintain its headquarters in Atlanta, Georgia.

Price Action: AAN shares are trading higher by 32.2% at $9.97 in premarket at the last check Monday.