Upbound Group has entered a definitive agreement to acquire Brigit, a financial health technology company, in a deal worth up to $460m.
The transaction includes a combination of cash and Upbound common stock, marking a pivotal step in Upbound’s strategy to provide innovative financial solutions for underserved consumers.
Brigit is a leader in the financial health sector, boasting nearly two million monthly active users and a subscription-based model that promotes financial inclusion. Since its launch in 2019, the company has saved users approximately $1bn in overdraft fees through its Instant Cash advance product, which leverages proprietary AI and machine learning technology. Brigit also offers credit-building tools and financial education resources to help users manage, save, and earn money effectively.
Upbound’s acquisition of Brigit will significantly enhance its offerings. Brigit’s advanced data analytics and tech stack will integrate with Upbound’s existing brands, including Acima and Rent-A-Center, to improve risk management, fraud prevention, and customer approval processes. This synergy aims to enhance customer engagement and loyalty by delivering personalised financial solutions at the right time and through the right channels.
Mitch Fadel, Upbound CEO, emphasised the strategic importance of the acquisition, stating: “We are thrilled to welcome Brigit, a company whose mission and target customer base are closely aligned with ours, into our family of brands.
“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.”
He highlighted that Brigit’s offerings, including budgeting, credit building, and savings solutions, complement Upbound’s mission to serve financially underserved communities.
Brigit CEO Zuben Mathews shared his enthusiasm for the partnership, stating, ““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. Together, we are excited to widen our reach and bring financial freedom to even more people in need.”
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