Rick's Cabaret (RICK) To Buy VCG Holding Corp. (VCGH)

Rick's Cabaret International (Nasdaq: RICK) signed a letter of intent to buy VCG Holding Corporation (Nasdaq: VCGH) for about $46 million in stock.

If the deal goes through, with a total of 38 night clubs under management, it would create the biggest publicly traded gentlemen's club company in North America.

The proposed deal is a stock swap that values VCG Holding Corporation shares between $2.20 and $3.80 each, based on ratios weighing the stock against Rick's Cabaret International shares.