PROG Holdings, Inc. (NYSE:PRG) has agreed to purchase Purchasing Power for $420 million in cash, a deal that will close in early 2026 after regulatory approvals. The transaction will be financed with a mix of the company’s cash reserves and new debt, while Purchasing Power will retain approximately $330 million of non‑recourse funding debt under its existing securitization and warehouse facilities.
The acquisition broadens PROG’s fintech footprint by adding a payroll‑deduction purchasing platform that serves more than seven million employees nationwide, including 48 Fortune 500 firms and over 360 established employers. The platform’s moated B2B2C model positions PROG to tap the growing voluntary employee‑benefit market and the near‑ and sub‑prime consumer segment, aligning with the company’s “Grow, Enhance, and Expand” strategy.
PROG’s Q3 2025 results provide a strong financial foundation for the deal. Consolidated revenue was $595.1 million, down 1.8% year‑over‑year, while adjusted EBITDA rose to $67.0 million, up 5.5% YoY, and margins expanded to 11.3%. Non‑GAAP diluted earnings per share reached $0.90, a 21.6% beat over analyst expectations. The earnings beat was driven by disciplined cost management and a favorable mix shift toward higher‑margin segments such as Four Technologies’ buy‑now‑pay‑later business, which grew significantly in Q3 2025.
Management highlighted the strategic fit of Purchasing Power, noting that the platform “adds a highly complementary and important new platform to our growing ecosystem of payment solutions, further diversifying our product portfolio.” The company expects revenue and cost synergies from cross‑selling opportunities, enhanced data analytics, and improved credit‑risk assessment, which will accelerate growth across its lease‑to‑own, buy‑now‑pay‑later, and credit‑building businesses.
The deal positions PROG as one of the most diversified providers of financial health and payment services for underserved consumers. By integrating Purchasing Power’s payroll‑deduction model, PROG can deepen employer relationships, expand its customer base, and strengthen its competitive stance in the near‑ and sub‑prime market, supporting long‑term growth prospects.
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