FinTech Upbound Group (UPBD) has sealed its $460 million cash-and-stock takeover of peer Brigit to help boost the financial prospects of credit-poor U.S. consumers.
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New Group Will Serve 4 Million Customers
The deal, which was first announced late last year, will create a group serving around four million people. Brigit provides financial services including cash advances and credit-profile building through its subscription-based digital app. It currently has nearly 2 million monthly active customers and will continue to run as a segment within the Upbound organisation. Before the acquisition, it was backed by investors including NBA star Kevin Durant.
Apart from gaining new customers the acquisition will also help give Upbound, whose brands include Acima and Rent-A-Center, access to Brigit’s data modelling and technology platform. This should help it create more accurate financial profiles of its customers and help people with low credit scores buy products such as furniture for their homes.
Helping Americans Build Their Financial Futures
It will also include financial wellness solutions and educational resources to help people better manage, save, and earn money. “Joining forces with Upbound accelerates our opportunity to serve millions of Americans left behind by traditional financial institutions. We can empower those underserved individuals to build brighter financial futures,” said Brigit co-founder & CEO Zuben Mathews.
Shares in Upbound Group were down slightly in early trading on Friday. They have dropped by around 6% over the last 12 months.
Is UPBD a Good Stock to Buy?
On TipRanks, UPBD has a Strong Buy consensus based on 5 Buy and 1 Hold rating. Its highest target price is $45. UPBD stock’s consensus price target is $40.40 implying an upside of 36.30%.
