Dec 12 (Reuters) - Fintech startup Brigit, which counts
the venture capital firms of actor Ashton Kutcher and basketball
star Kevin Durant among its investors, is nearing a deal to sell
itself to financial services firm Upbound Group ( UPBD ), people
familiar with the matter said.
The cash-and-stock deal is worth around $460 million and
could be announced as soon as Thursday, said the sources, who
spoke on condition of anonymity to discuss confidential
deliberations.
Both Upbound and Brigit did not immediately respond to
requests for comment.
The combination will 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
create more accurate customer financial profiles, the sources
said.
Rising inflation has pushed up prices and squeezed
low-income Americans, who have few liquid resources, such as
bank savings. Low-income households are on track to have fewer
liquid assets this year than projected before the COVID-19
pandemic, according to research released in August by the
Federal Reserve Bank of San Francisco.
Founded in 2017, Brigit provides financial services
including cash advances and credit-profile building through its
subscription-based digital app. Brigit counts more than 7
million users of its app since inception, according to its
website.
Plano, Texas-based Upbound, whose brands include
Rent-A-Center and Acima, offers consumers with low credit scores
help to buy products, including furniture, electronics, and
other home goods, through so-called lease-to-own agreements.
For the quarter ended September 30, Upbound reported a 9.2%
jump in revenue, while its operating profit rose to $70.1
million from $58.1 million a year ago, driven by higher rentals
and sales from consumers.