Salt Lake City — PROG Holdings, Inc. (NYSE: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.
“Acquiring Purchasing Power adds a highly complementary and important new platform to our growing ecosystem of payment solutions, further diversifying our product portfolio and advancing our three-pillared strategy to Grow, Enhance and Expand,” said Steve Michaels, PROG Holdings President and Chief Executive Officer. “Together we expect to expand our offerings more quickly and effectively and reach more customers, becoming one of the most diversified providers of financial health and payment services to the near- and sub-prime market.”
The addition of Purchasing Power meaningfully expands PROG Holdings’ platform by broadening the ways consumers can access flexible, budget-friendly payment options across high-demand categories like electronics, home furnishings, fitness, travel, services, and more. The acquisition also strengthens PROG Holdings’ reach and relationships across its partner ecosystem as Purchasing Power brings more than 360 employer partnerships and a strong benefit-broker distribution channel.
PROG’s expanded scale will also allow for accelerated development of new products by leveraging the combined strengths of the businesses, which is expected to increase engagement, conversion and lifetime value of its customers. In addition, the combination of the businesses will create opportunities for revenue synergies, cost efficiencies, improved decisioning capabilities and recoveries.
“Purchasing Power is excited to become part of the PROG Holdings family of companies. Both of our companies share a similar mission to improve the financial wellbeing of our customers by providing them with transparent and competitive payment options,” said Trey Loughran, Chief Executive Officer of Purchasing Power. “We believe PROG’s scale and resources will accelerate our growth and allow us to better serve our clients and customers. This transaction represents the next logical step in Purchasing Power’s evolution.”