Upbound Group Acquires Brigit in a $460M Deal to Enhance Financial Inclusion

Published: 17 Dec 2024

Author: Precedence Research

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Upbound Group has acquired the financial health technology company Brigit for a sum amounting to $460 million. The digital financial service company has thus far managed to save users approximately $1 billion in fees since its inception in 2019 through its subscription-based model and AI-based features such as Instant Cash Advance. This acquisition now means Upbound receives Brigit's proprietary advanced technology, which it will integrate into its existing brands, Acima, and Rent-A-Center, augmenting risk management, fraud detection, and consumer approval processes. Upbound CEO Mitch Fadel observed as he spoke about the merger, the congruence of the two companies' objectives that would propel the leveraging of innovations to ensure targeted personalized product offerings for underserved consumers. Brigit CEO, Zuben Mathews, joined in with the euphoria on the prospect of the partnership arguing this will expand the grander's impact and efficacy in bringing financial freedom to millions of Americans who financial services have missed.

The acquisition will facilitate advanced data analytics and technology owned by Brigit to include other companies in its portfolio, particularly Acima and Rent-A-Center. The acquisition was earmarked to improve risk assessment, fraud prevention, and customer engagement, with the special purpose of sharpening approval processes, loyalty, and service offerings.

An acquisition of Brigit, which is a subsidiary of Brigit, is a strategic move by Upbound, a financial solutions platform, for the growth of its market by expansion and innovation within various products. The acquisition will uplift Upbound in terms of financial wellness to underserved communities through liquidity tools, budgeting systems, or savings programs. Mitch Fadel, the Upbound CEO, said the acquisition would really propel growth, scale, diversify its financial profile, and ultimately result in long-term shareholder value.

The head of Brigit, Zuben Mathews, said they were happy to work with them, as the company is committed to ensuring that underserved Americans have the ability to get stable finances. He stressed the fact that it will extend Brigit's reach and impact in order to provide solutions for millions more in need of financial inclusion.

Upbound has now acquired Brigit, a financial technology company that seeks to widen the market into underserved communities. This deal will further optimize the artificial intelligence abilities of Brigit to better serve the consumers left out by traditional finance systems. It signifies a commitment of Brigit for financial benefits in alignment with what Upbound is already offering and seeks to level the ground toward financial literacy through credit-building and budgeting tools. Then, a holistic financial ecosystem is born.

Looking Forward

The deal for the acquisition looks set to be finished by the end of December 2024, with Upbound and Brigit moving forth in the championing of underserved consumers through technology and innovation. Such a partnership is indeed very promising in transforming underserved markets in developing financial solutions by combining fintech innovations with a customer-first approach. Upbound will soon redirect that path in financial inclusion.