PROG Holdings To Acquire Purchasing Power For $420M In Cash, Funded Through A Combination Of Cash On Hand And Debt Financing

• Expands PROG Holdings' growing ecosystem through a new, scalable customer acquisition channel that complements its existing payment solutions
• Creates access to an employee-focused consumer base with limited overlap across existing PROG customers, enabling substantial expansion of current and new offerings
• Generates new employer-client and partner opportunities
• Advances PROG Holdings' long-term growth strategy to provide transparent and inclusive payment options to near- and below-prime consumers

PROG Holdings, Inc. ((PRG), the fintech holding company for Progressive Leasing, Four Technologies, and Build, today announced it has reached an agreement to acquire Purchasing Power, a leading voluntary employee benefit program provider allowing employees to purchase brand-name products and services through either automatic payroll deductions or allotments.

Purchasing Power successfully partners with some of America's largest employers across more than 25 industries nationwide, including 48 Fortune 500 companies, seven of the top 30 U.S. employers, and many employers in the public sector. Through these relationships, more than seven million employees nationwide have access to its innovative purchasing and financial wellness offerings. The platform provides access to over 70,000 products and services through a broad network of suppliers and is powered by a proprietary payments infrastructure that connects directly to payroll systems, making payroll deduction simple and seamless for both employees and employers.

Transaction Details

Under the terms of the transaction, PROG Holdings will acquire Purchasing Power for $420 million in cash, funded through a combination of cash on hand and debt financing. In addition, at the closing of the transaction, Purchasing Power will have approximately $330 million of non-recourse funding debt under its securitization and warehouse facilities that will remain in place. The transaction is expected to close in early 2026 following the receipt of requisite regulatory approvals and the satisfaction of other customary closing conditions.