Upbound Group signs $460m deal to acquire Brigit to drive financial innovation

Plano, Texas – Upbound Group, Inc. has entered into a definitive agreement to acquire Brigit, a prominent financial health technology company, for up to $460 million. The acquisition is a bold move to advance Upbound’s mission of providing innovative financial inclusivity solutions for underserved consumers by integrating Brigit’s AI/ML cash flow capabilities and proven subscription-based business model.

This transaction signifies a major milestone for Upbound, a company that has long been recognized as a leader in lease-to-own services through brands like Rent-A-Center and Acima. With Brigit’s technology, Upbound aims to expand its offerings beyond traditional leasing models, creating a unified platform to address the needs of consumers left out of mainstream financial systems.

Brigit’s Game-Changing Financial Health Technology

Launched nationally in 2019, Brigit has quickly become a leader in financial health technology, serving nearly two million active monthly customers. The app is designed to provide everyday Americans with tools to budget effectively, access earned wages early, build credit, and prevent identity theft. Through its innovative use of AI/ML cash flow insights, Brigit has saved users approximately $1 billion in overdraft fees, further cementing its role as a financial ally for its customers.

Brigit’s success is rooted in its highly engaged user base, which includes over one million active paying subscribers. These users log in six times monthly on average, reflecting the app’s relevance in managing daily financial needs. In addition to its flagship instant cash advance product, Brigit offers credit-building tools and financial wellness resources, empowering users to achieve long-term financial stability.

The company’s recurring subscription revenue model ensures sustained growth, with revenues projected to reach $215–$230 million in 2025 and an estimated $350–$400 million in 2026.

Strategic Fit and Opportunities for Upbound

Upbound’s Chief Executive Officer, Mitch Fadel, described the acquisition as a pivotal step in the company’s strategy to create a comprehensive financial inclusivity solutions platform. By integrating Brigit’s proprietary AI/ML cash flow models, Upbound will enhance its ability to assess customer needs, improve risk management, and deliver tailored financial products that promote long-term engagement.

Brigit’s technology is expected to elevate the performance of Upbound’s existing brands, Rent-A-Center and Acima, by expanding the company’s customer insights. This will allow for better fraud prevention, increased customer approvals, and more personalized account management. Upbound anticipates these enhancements will improve conversion rates, reduce churn, and build stronger customer loyalty.

The integration also positions Upbound as a leader in the underserved financial services sector, broadening its market reach and accelerating its transition to a technology-driven growth model. Within four years, Upbound expects approximately two-thirds of its revenue and Adjusted EBITDA will come from digital platforms powered by recurring subscription revenue streams.

Financial Details of the Transaction

The $460 million deal will be funded through a combination of cash, stock issuance, and borrowing capacity under Upbound’s $550 million revolving credit facility. The structure includes $325 million payable at closing (75% in cash and 25% in Upbound common stock), $75 million in deferred payments over two years, and up to $60 million in performance-based earnouts by 2026.

The transaction is expected to be immediately neutral to non-GAAP EPS and meaningfully accretive starting in 2026. By 2025, the deal is projected to contribute $25–$30 million to Adjusted EBITDA, with this figure growing to $70–$80 million by 2026.

Brigit’s proven ability to generate recurring subscription revenue will complement Upbound’s existing operations, enabling the company to diversify its financial profile while enhancing scalability.

Future Growth Potential

Brigit’s leadership team, including co-founders Zuben Mathews and Hamel Kothari, will remain in place as the company continues to operate under its existing branding. The New York City headquarters will serve as an innovation hub for Upbound, further driving advancements in financial health technology and customer-centric solutions.

Upbound expects the integration of Brigit’s platform to significantly enhance its operational efficiencies and expand its addressable market. The combined company aims to deliver innovative tools that help consumers manage their finances, build credit, and achieve financial independence.

Industry Impact

The acquisition underscores a broader shift in the financial services industry toward technology-driven solutions that address the needs of historically underserved demographics. Experts predict that the merger will position Upbound as a leader in underserved financial services, leveraging Brigit’s advanced technology and AI/ML cash flow models to redefine how financial products are delivered.

Brigit’s co-founder, Zuben Mathews, expressed excitement about the partnership, highlighting its potential to accelerate innovation and expand access to financial tools for millions of Americans. By combining forces, Upbound and Brigit are set to create a best-in-class platform that not only drives growth but also fosters financial empowerment.