Upbound Group finalizes $460m Brigit acquisition to expand digital financial services

Upbound Group, Inc. has officially completed its acquisition of Brigit, a leading financial health technology firm, in a strategic move to enhance its portfolio of digital financial solutions. The $460 million deal, originally announced in December 2024, strengthens Upbound’s market position by integrating Brigit’s AI-driven cash flow underwriting capabilities into its existing brands. This acquisition is expected to accelerate Upbound’s growth by expanding consumer access to earned wage access, credit-building tools, and financial literacy solutions.

Brigit’s inclusion marks a significant shift in Upbound’s business model, broadening its reach beyond lease-to-own services and into the realm of AI-powered digital financial solutions designed for underserved consumers. The acquisition is also expected to enhance Upbound’s underwriting and fraud prevention capabilities, driving improved risk management and customer approvals across its platform.

How will Brigit’s technology transform Upbound’s financial services?

Brigit, known for its machine learning-powered cash flow underwriting system, provides consumers with financial tools designed to promote stability and credit growth. By integrating Brigit’s proprietary AI technology, Upbound aims to strengthen its offerings across its flagship brands, including Rent-A-Center and Acima. The addition of Brigit’s financial management tools allows Upbound to offer a more comprehensive suite of digital financial solutions, including earned wage access, credit-building programs, AI-driven risk assessment for more accurate credit approvals, and enhanced fraud prevention measures using real-time cash flow underwriting.

Mitch Fadel, CEO of Upbound, highlighted the acquisition’s significance, stating that incorporating Brigit’s innovative financial health technology into Upbound’s ecosystem is not only expanding service capabilities but also creating new opportunities for financial empowerment among underserved consumers. The integration of Brigit’s technology will enable Upbound to reach a broader audience while offering more personalized financial products that cater to the unique needs of consumers who have traditionally been excluded from mainstream financial services.

What financial impact does this acquisition have on Upbound Group?

Upbound’s acquisition of Brigit is expected to drive long-term revenue growth and improve operational efficiency. Brigit operates on a subscription-based model, with approximately two million active monthly users—half of whom are paying subscribers. The transaction is projected to contribute $25 million to $30 million in Adjusted EBITDA in 2025, rising to $70 million to $80 million by 2026.

Brigit’s strong consumer engagement is another advantage for Upbound. On average, paying Brigit users log in six times per month, showcasing a high level of platform interaction. This level of engagement is expected to enhance Upbound’s overall customer retention strategy, reducing churn while increasing lifetime customer value.

From a financial perspective, Upbound structured the acquisition to maintain its liquidity while positioning itself for long-term growth. The $460 million deal consists of $325 million in upfront payments, 75% in cash and 25% in stock, with an additional $75 million in deferred cash consideration over two years. A performance-based earnout of up to $60 million is also included, contingent on Brigit’s financial performance in 2026.

By acquiring Brigit, Upbound is diversifying its revenue streams and strengthening its presence in the growing fintech sector. The company anticipates that within four years, approximately two-thirds of its revenue and Adjusted EBITDA will come from digital financial solutions, reinforcing its evolution from a lease-to-own model to a broader financial technology company.

How does Brigit’s acquisition align with Upbound’s long-term strategy?

Upbound has been steadily transforming into a data-driven fintech company focused on providing financial health technology to underserved markets. The acquisition of Brigit aligns with this vision by introducing a scalable, AI-powered financial platform that complements Upbound’s existing products.

Brigit’s expertise in cash flow underwriting will allow Upbound to refine its credit approval processes, ensuring more consumers can access financial products tailored to their needs. Additionally, Brigit’s identity theft protection services and budgeting tools will provide Upbound customers with enhanced financial security and planning capabilities.

Co-founders Zuben Mathews and Hamel Kothari will continue to lead Brigit as a business segment within Upbound, ensuring continuity in its innovation-driven approach. Brigit will also retain its New York City headquarters, serving as one of Upbound’s core innovation hubs for financial technology development. The leadership team’s deep knowledge of AI-driven financial services is expected to drive further advancements in Upbound’s ability to create accessible and affordable financial solutions for consumers nationwide.

What does this acquisition mean for consumers?

For consumers, the integration of Brigit into Upbound’s ecosystem means greater access to AI-powered digital financial solutions that enhance financial stability. Brigit’s ability to provide real-time cash flow assessments allows customers to make informed financial decisions while avoiding overdraft fees and late payment penalties.

Since its launch in 2019, Brigit has saved users an estimated $1 billion in overdraft fees through its earned wage access feature. With Upbound’s backing, Brigit’s impact is expected to grow, offering more individuals the tools they need to manage their finances effectively. The combination of Upbound’s extensive retail presence and Brigit’s technology-driven platform is set to create a seamless customer experience, bridging the gap between digital finance and everyday financial management.

Ultimately, the acquisition signifies a shift toward more inclusive financial services, ensuring that consumers who have been historically underserved by traditional banks can access innovative, technology-driven solutions that empower financial growth. By expanding its portfolio with Brigit’s advanced financial management tools, Upbound is solidifying its position as a leader in the fintech industry, delivering financial health technology that meets the evolving needs of modern consumers.