Upbound Group, Inc. · NASDAQ:UPBD
Upbound — Merger or Acquisition (December 2024)
18 slides from Upbound's merger presentation, December 2024
Slide 1: Upbound to Acquire Brigit
Upbound to + Acquire Brigit December 2024
Slide 2: Disclaimer
Disclaimer Cautionary Note Regarding Forward-Looking Statements This presentation and the related webcast contain forward-looking statements that involve risks and uncertainties. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995
Slide 3: Creating a Financial Home for the Underserved
Creating a Financial Home for the Underserved Upbound has agreed to acquire Brigit for up to $460M, including $325M payable at closing; transaction expected to contribute between $70 million and $80 million of Adjusted EBITDA1 by 2026 Creates a sophisticated fintech ecosystem ideally suited to suppo
Slide 4: Upbound's Evolution
Upbound’s Evolution Upbound has a storied history of leveraging technology to evolve its operations and its digital and virtual offerings – always in service of customers. Founded in 1973 Added in 2021 Created in 2023 Added Today! Pioneering industry Acquires Acima, a Rebrands as Upbound The next ex
Slide 5: Brigit Overview
Brigit Overview Brigit was launched in 2019 with the goal of helping everyone build a brighter financial future. Subscription model with a suite of products that use AI- ~$1B+ Consistently Increased and ML-powered cash flow data insights to saved for users by helping them avoid overdraft fees, ranke
Slide 6: Products That Improve Financial Health
Products That Improve Financial Health Bundle of proprietary, AI- and ML-powered financial wellness products and services offered through multiple affordable, user-aligned subscription tiers Instant Cash Credit Builder Smart Alerts & Offers Budgeting & Literacy Get access to EWA / Build credit by gr
Slide 7: Recurring Revenue Model with Growing, Engaged Consumer Base
Recurring Revenue Model with Growing, Engaged Consumer Base Brigit’s compelling financial profile and user metrics demonstrate strength of underlying business model 2025E 2026E ~2M monthly active users, Revenue: $215M-$230M Revenue: $350M-$400M up 320% since Jan. 2021 Adj. EBITDA1: $25M-$30M Adj. EB
Slide 8: Talented, Passionate Team
Talented, Passionate Team Top-tier fintech pioneers who are experts on the financially underserved, with a sharp and deeply-informed vision and the talent to execute it Zuben Mathews Hamel Kothari Brigit Co-founder and CEO Brigit Co-founder and CTO Industry Leading Team Bringing Niche Experience fro
Slide 9: Strategic Rationale
Strategic Rationale Strategic Transaction Providing Significant Growth Opportunities and Proprietary AI/ML Technologies 1 Shared Values and Target Customers A significant next step in 2 Broadening Relevance to an Expanding TAM Upbound’s strategy to expand its ecosystem of technology solutions for un
Slide 10: 1. Shared Values and Target Customers
1. Shared Values and Target Customers Both organizations driven by dedication to financially underserved consumers Combination connects product solutions with access to funds Similar customer segments means combination will accelerate our missions and customer reach and lifetime value 10
Slide 11: 2. Broadening Relevance to an Expanding TAM
2. Broadening Relevance to an Expanding TAM Deeper penetration into large addressable market with additional offerings amid growing demand due to macro trends Delivering new solutions, including offering Upbound products to Brigit customers and 62% 63% 37% 180M vice versa Respective customer bases a
Slide 12: 3. Differentiated Industry-Leading Platform
3. Differentiated Industry-Leading Platform Adding Brigit’s products and technology is expected to create a smarter financial solutions ecosystem to support a broader market of underserved consumers Provides consumers Improves our Adds new Holistic view of our An R&D innovation greater economic core
Slide 13: 4. Data and Tech Enhances Customer Insights
4. Data and Tech Enhances Customer Insights Proprietary cash flow recommendation engine is bank-agnostic and utilizes real-time, holistic and verified data Underwriting & Servicing & Account Marketing & Risk Platform Management Platform Cross Sell Engine Behavior & Life Events Spending Customer Prof
Slide 14: 5. Strategic Growth and Diversification
5. Strategic Growth and Diversification Expect addition of Brigit to diversify revenue and Adjusted EBITDA mix over time 2025 2026 Withinfour Within fouryears years Expected to be accretive to Expected to be accretive to ExpectUpbound Expect Upboundrevenue/Adjusted will be ~2/3 revenue/EBITDA EBITDA
Slide 15: Transaction Summary
Transaction Summary • $325M payable at closing, 75% cash and 25% Upbound shares • $75M in deferred cash consideration over two years Aligns interests around shareholder Consideration value and preserves financial flexibility • Potential cash earnout of up to $60M if company achieves certain financia
Slide 16: Capital Allocation Priorities
Capital Allocation Priorities The Brigit transaction aligns with and supports Upbound’s established capital allocation strategy Invest in Return Capital Maintain Strong Balance 1 2 3 the Business to Shareholders Sheet and Liquidity Transaction is an investment in Upbound Board recently approved Upbo
Slide 17: Creating a Financial Home for the Underserved
Creating a Financial Home for the Underserved Upbound has agreed to acquire Brigit for up to $460M, including $325M payable at closing; transaction expected to contribute between $70 million and $80 million of Adjusted EBITDA1 by 2026 Creates a sophisticated fintech ecosystem ideally suited to suppo
Slide 18: Upbound Brigit
upbound brigit
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