US-based financial services company Upbound Group has agreed to acquire financial health technology company Brigit for up to $460m, comprising cash and Upbound shares.
Upbound provides financial products to address the growing needs of underserved consumers.
Brigit offers tools for budgeting, cash advances, and credit building to improve financial health.
Under the terms of the agreement, Brigit will receive $460m, of which $325m will be payable at closing, 75% in cash and 25% in Upbound shares.
It will receive $75m in deferred cash consideration over two years, and a potential earnout of up to $60m in cash contingent on certain financial performance metrics in 2026.
Upbound will fund the transaction through a mix of cash on hand, a loan under its $550m revolving credit facility, and the issuance of new shares to Brigit stockholders.
The acquisition is expected to be completed in the first quarter of 2025, subject to certain customary closing conditions, including regulatory approvals and other conditions.
Upon closing, Brigit will continue to operate from its headquarters in New York City, under its existing branding as a business segment of Upbound.
Brigit founders Zuben Mathews and Hamel Kothari will continue to lead the Brigit team.
The combined business is anticipated to generate revenues up to $215m to $230m in 2025 and around $350m to $400m in 2026.
Upbound CEO Mitch Fadel said: “Creating a financial solutions platform with Brigit as the backbone expands our addressable market and enables Upbound to innovate across even more product categories to improve the financial health of our customers.
“The ability to add new products for our customers beyond lease-to-own is an important part of our strategy and now we can offer liquidity solutions, budgeting, credit building, financial literacy and savings.
“We believe this transaction will position Upbound for accelerated growth, with greater scale and a more diversified financial profile, ultimately driving long-term value for our shareholders.”
Brigit is expected to expand Upbound’s financial solutions, positioning the combined company to create an industry-leading technology platform for the financially underserved.
Also, Brigit’s unique data and tech stack would enhance Upbound’s existing brands, including Acima and Rent-A-Center (RAC).
It would improve risk management and fraud prevention and enable more customer approvals while mitigating net losses and enhancing account management.
The combined company’s data-driven insights are expected to create a more personalised customer experience and deliver a wider range of targeted solutions for consumers.
Greenhill & Co. served as financial advisor, and Sullivan & Cromwell and Mayer Brown as legal counsel to Upbound, while FT Partners served as financial advisor and Cooley and Morgan Lewis & Bockius as legal counsel to Brigit, on the transaction.
Brigit cofounder and CEO Zuben Mathews said: “Brigit has helped everyday Americans build a brighter financial future through a suite of innovative financial products that leverage cutting-edge cash flow technology.
“This transaction is a testament to our team’s continued passion for helping the underserved and our dedication to innovation.
“By combining forces with Upbound, we can accelerate our impact and better serve the millions of Americans who have been historically underserved by traditional financial institutions.”
