Following this announcement, the transaction will represent an important step that reflects Unbound’s focus on expanding its technology-driven financial solutions for clients who are underserved by the traditional financial system.
In addition, the companies will continue to focus on meeting the needs, preferences, and demands of customers and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the industry as well.
Built on proprietary artificial intelligence (AI) and machine learning (ML)-powered cash flow data insights, Brigit’s core product is represented by its direct-to-consumer Instant Cash advance tool. Brigit also offers a credit builder product that helps its subscribers build their credit history over time as they increase their savings, as well as financial wellness solutions and educational resources that were developed in order to optimise the manner in which users manage, save, and earn money.
The Brigit acquisition is expected to immediately contribute to Upbound Group’s business because the app is already profitable, but also in the ways it can interact with its users. With only a 10% overlap between the two companies' customer bases, there is also a significant opportunity for cross-selling. The move will also help Upbound expand its product offerings to credit-poor consumers and give it access to Brigit's data modeling and technology platform, allowing it to design more accurate and secure customer financial profiles.
Throughout this acquisition, Upbound expects a pro forma net leverage ratio of approximately 3x and pro forma available liquidity of nearly USD 300 million. At the same time, Upbound continues to target leverage of approximately 2x over the long-term. According to officials of the company, the acquisition is expected to close in Q1 2025, currently being subject to receipt of requisite regulatory approvals and satisfaction of other customary closing conditions.
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