PROG Holdings has announced a definitive agreement to acquire Purchasing Power in a transaction valued at $420 million in cash, marking one of the company’s most significant expansion moves in recent years. The acquisition is set to broaden PROG Holdings’ reach across employer channels and deepen its access to near-prime and below-prime consumers seeking transparent and flexible payment options.
The Atlanta-based Purchasing Power platform serves more than 7 million eligible employees through partnerships with over 360 employers, including 48 Fortune 500 companies, 7 of the 30 largest U.S. employers, and a broad array of government and public-sector organizations. Its offering enables employees to purchase brand-name products and services via payroll deduction, supported by a proprietary payments infrastructure directly integrated with payroll systems. The platform provides access to more than seventy thousand products and services across electronics, furniture, fitness, travel, and other categories.
By integrating Purchasing Power into its ecosystem, PROG Holdings will gain a new, scalable customer-acquisition channel that significantly complements its existing companies: Progressive Leasing, Four Technologies, and Build. The company anticipates that its expanded scale will accelerate product development, enhance customer engagement, and create new opportunities for savings, cost efficiencies, improved decision-making capabilities, and better recoveries. PROG also expects the combination to increase customer lifetime value while expanding employer-client relationships and the reach of benefit-broker distribution.
The acquisition aligns with PROG Holdings’ long-term strategy to broaden its portfolio of inclusive and transparent payment solutions. It also meaningfully increases its ability to serve the near-prime and subprime consumer population with a broader range of options, in an environment where employers are expanding financial wellness benefits for their workforces.
The transaction will be funded with cash on hand and debt financing. At closing, Purchasing Power will maintain approximately $330 million in non-recourse funding debt tied to its securitization and warehouse facilities. The deal is expected to close in early 2026, subject to regulatory approval and customary closing conditions.
Support: Stephens is serving as financial advisor, and King and Spalding as legal counsel to PROG Holdings. Barclays is serving as advisor to Purchasing Power, with Kirkland and Ellis acting as legal counsel.
KEY QUOTES:
“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. 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.”
Steve Michaels, President and Chief Executive Officer, PROG Holdings
“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. 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.”
Trey Loughran, Chief Executive Officer, Purchasing Power
