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Upbound Group Inc., the owner of Rent-A-Center, has agreed to acquire financial technology company Brigit for up to $460 million, the companies announced Thursday. The deal, expected to close in the first quarter of 2025, will integrate Brigit's digital financial tools into Upbound’s portfolio, expanding its offerings for consumers underserved by traditional financial systems.

Strategic Expansion for Upbound

Plano, Texas-based Upbound will pay $325 million at closing, consisting of 75% cash and 25% in Upbound shares. Additional payments include $75 million in deferred cash over two years and a potential earnout of up to $60 million tied to Brigit's financial performance in 2026.

“Adding Brigit as the backbone of our financial solutions platform significantly broadens our addressable market,” said Upbound CEO Mitch Fadel. He emphasized that the acquisition aligns with the company’s strategy to diversify its product offerings, which will now include cash advances, budgeting, credit-building tools, financial literacy, and savings programs.

Fadel also noted the deal positions Upbound for accelerated growth, enhancing shareholder value through increased scale and a more diversified financial profile.

Brigit's Impact and Future Role

Brigit, a subscription-based fintech company, provides services like cash advances and credit-building tools. Since its inception, the platform has reportedly saved users around $1 billion in overdraft fees and currently serves nearly 2 million active monthly customers. The business is projected to generate revenues of $215 million to $230 million in 2025, growing to $350 million to $400 million in 2026.

"Brigit has helped everyday Americans build a brighter financial future with innovative financial products leveraging advanced cash flow technology," Brigit CEO Zuben Mathews said. Following the acquisition, Brigit will operate as a business unit of Upbound, retaining its branding and New York City headquarters. Mathews and co-founder Hamel Kothari will continue leading the company.

Deal Advisors and Legal Counsel

Sullivan & Cromwell LLP and Mayer Brown LLP are advising Upbound on the transaction, while Cooley LLP and Morgan Lewis & Bockius LLP represent Brigit. Greenhill & Co. Inc. and FT Partners served as financial advisers for Upbound and Brigit, respectively.

Growth Potential for Upbound

Upbound’s acquisition of Brigit signals a strategic pivot towards fintech innovation, leveraging Brigit’s established platform to expand beyond lease-to-own services. The deal aligns with Upbound’s goal of serving financially underserved communities while unlocking new growth opportunities.