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Ashton Kutcher-backed fintech Brigit nears $460 million sale to Upbound, sources say
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Ashton Kutcher-backed fintech Brigit nears $460 million sale to Upbound, sources say
Dec 12, 2024 2:05 PM

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.

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