Rent-A-Center said Monday it will be paid $92.5 million as part of an agreement to end litigation over the Plano-based rent-to-own retailer’s surprise termination of its pending merger with Vintage Capital last year.

The agreement in principle to settle litigation with Vintage Capital Management LLC and its financial partner B. Riley Financial Inc. will end a dispute that started last December. Rent-A-Center terminated a pending merger after Vintage didn’t present it with an extension letter.  The battle quickly moved into court. A Delaware Court of Chancery ruled in March that Rent-A-Center’s merger termination was valid even though Vintage showed that the two had agreed that the merger wouldn’t be completed until 2019 due to the both sides continuing to work on the Federal Trade Commission’s antitrust review.

Vintage Capital hasn’t been reached for comment.

Rent-A-Center, a chain of 2,300 stores, said both sides have agreed to reach a definitive settlement by Thursday and that the payment will be made within 28 days.

After paying all costs, fees and expenses of ending the merger, Rent-A-Center said it expects to receive pre-tax amount of about $80 million. The original merger agreement’s break-up fee was $126.5 million.

The offer to merge with Vintage last June was for $15 a share and the stock has since climbed 40 percent and closed last week at $21.30 a share. The stock opened higher this morning.

“We are pleased to finally conclude this matter, avoiding further litigation and providing certainty regarding payment of the termination fee,” Mitch Fadel, Rent-A-Center chief executive officer, said in a statement. “We look forward to turning our sole and undivided attention to executing our strategic plan focused on growing our business and enhancing value for our stockholders.”

Twitter: @MariaHalkias