Katapult Holdings, Inc. (NASDAQ: KPLT) has entered into a definitive all‑stock transaction with The Aaron’s Company, Inc. and CCF Holdings LLC that will create a new, combined company that will continue to operate under the Katapult Holdings name and be headquartered in Atlanta, Georgia. Katapult shareholders will receive 6% of the combined company on a fully diluted basis, while Aaron’s and CCF Holdings shareholders will own the remaining 94%. The parties expect the merger to close in the first half of 2026, subject to customary regulatory and shareholder approvals.
The strategic rationale behind the deal is to combine Katapult’s technology‑driven lease‑to‑own platform with Aaron’s extensive retail footprint of roughly 1,200 stores and CCF Holdings’ network of 1,598 retail locations and payroll‑advance services. By integrating Katapult’s mobile app and KPay payment solution with Aaron’s omni‑channel network, the new entity aims to broaden its product mix beyond furniture and home goods into automotive and electronics, while deepening its customer base through cross‑selling opportunities and shared technology platforms. The merger is expected to generate operational synergies, including cost savings from consolidated back‑office functions and revenue enhancements from cross‑channel sales.
Katapult’s recent financial performance provides a solid foundation for the transaction. In Q3 2025, the company reported revenue of $74.0 million, up 22.8% year‑over‑year, and adjusted EBITDA of $4.4 million, a dramatic improvement from $0.6 million in Q3 2024. Aaron’s, meanwhile, posted Q3 2025 revenue of $595.1 million, down 1.8% YoY, but delivered an earnings per share of $0.90, beating consensus estimates. CCF Holdings, a private firm, has historically generated $334.9 million in revenue and $26.4 million in EBITDA in 2019, and it continues to provide payroll‑advance services across more than 1,500 retail locations.
Pro‑forma projections for the combined company are compelling. The merger is expected to lift last‑12‑month revenue to over $4 billion and adjusted EBITDA to approximately $450 million, implying a valuation multiple of roughly 9× revenue and 10× EBITDA. These figures suggest that the combined entity will achieve double‑digit adjusted EBITDA margin potential as scale and cross‑channel synergies materialize. The deal also positions the new company as a national omni‑channel platform serving millions of customers who are often excluded from traditional credit markets.
Leadership of the combined company will be anchored by Cory Miller, former CEO of Aaron’s, who will serve as CEO; Russell Falkenstein, former CFO of Aaron’s, will take the CFO role; and Kyle Hanson, former CEO of CCF Holdings, will act as Executive Chair. In a statement, Miller said the transaction “brings together the complementary strengths of all three companies to better serve millions of customers whose needs are too often unmet by traditional financial offerings.”
The announcement has already sparked a strong market reaction. Investors have responded positively to the prospect of a larger, more diversified entity that can leverage Katapult’s technology, Aaron’s retail reach, and CCF’s financial services. Analysts have highlighted the potential for significant cost savings and revenue synergies, and the market has rewarded the news with a sharp increase in the company’s valuation.
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