Upbound Group, Inc. (NASDAQ: UPBD), a leader in accessible and inclusive financial products powered by technology and data, has announced a definitive agreement to acquire Brigit, a top financial health technology company, for up to $460 million. The deal will include both cash and shares of Upbound common stock. This acquisition aligns with Upbound’s strategy to broaden its technology-driven financial solutions for consumers who are underserved by traditional financial systems.
Upbound Group, Inc. has entered into a definitive agreement to acquire Brigit, a leading financial health technology company, for up to $460 million. This deal will include a combination of cash and shares of Upbound common stock. The acquisition reflects Upbound’s commitment to expanding its technology-driven financial solutions for underserved consumers.
Founded in 2019, Brigit offers a subscription-based model designed to improve financial inclusion. It is one of the most downloaded financial health apps, leveraging proprietary AI and machine learning technology to provide services like instant cash advances (earned wage access or EWA), credit building, and financial wellness solutions. Brigit has helped users save approximately $1 billion in overdraft fees and currently serves nearly two million monthly active customers. The company is projected to generate $215–230 million in revenue by 2025, with that number increasing to $350–400 million by 2026.
This acquisition will enhance Upbound’s portfolio, strengthening its position in offering a comprehensive suite of financial services. Brigit’s data and technology will also complement Upbound’s existing brands, such as Acima and Rent-A-Center (RAC), by improving risk management, fraud prevention, and customer approvals, while reducing losses. Additionally, Brigit’s capabilities are expected to create a more personalized customer experience, boosting engagement, reducing churn, and driving loyalty.
Upbound CEO Mitch Fadel expressed excitement about integrating Brigit into their ecosystem, which will allow the company to offer new products like liquidity solutions, budgeting, credit building, and financial literacy. This acquisition is seen as a significant step toward accelerating Upbound’s growth and enhancing its market scale and financial diversity.
Brigit’s founders, Zuben Mathews and Hamel Kothari, will continue to lead the Brigit team under Upbound’s umbrella. Brigit will retain its branding and headquarters in New York City, which will become a key innovation hub for Upbound.
The transaction consists of $325 million payable at closing, with 75% in cash and 25% in Upbound shares. An additional $75 million in deferred cash consideration is due over two years, with the potential for an earnout of up to $60 million based on 2026 financial performance. Upbound plans to fund the acquisition using a combination of cash on hand, borrowing from its $550 million revolving credit facility, and issuing new shares of Upbound stock.
Upbound anticipates this acquisition will accelerate growth, enhance its financial profile, and improve its market reach. The deal is expected to close in Q1 2025, subject to regulatory approval and customary closing conditions.
