Repay Holdings Acquires KUBRA for $372 Million

Repay Holdings Corporation is significantly expanding its footprint in the consumer bill payment arena with the definitive agreement to acquire KUBRA for approximately $372 million in an all-cash transaction. This strategic move aims to amplify Repay's existing payment processing capabilities by integrating KUBRA's robust bill payment and customer engagement solutions, particularly within the utilities, government, and insurance sectors.

The combination is set to create a formidable entity in the payments space. KUBRA, with its established network serving over 250 clients and reaching more than 40% of households across the United States and Canada, brings substantial market penetration. This acquisition is projected to propel the combined company's annual payment volume past the $130 billion mark, extending its reach across more than 18 distinct vertical markets. The synergy is expected to enhance Repay's go-to-market strategies and deepen its capacity to offer integrated billing, payment, and communication services.

Financially, the merged operation anticipates robust performance, projecting revenues of around $548 million and adjusted EBITDA of approximately $178 million, based on 2025 figures. Repay is forecasting substantial cost efficiencies, targeting at least $15 million in annual cost synergies and an additional $5 million in technology savings within three years. Furthermore, the company sees potential for incremental revenue growth exceeding $5 million by 2028, driven by cross-selling opportunities across the expanded client base.

To finance this significant acquisition, Repay Holdings has secured a substantial credit facility. Truist Bank has committed to a $500 million term loan and an additional $100 million revolving credit facility. Following the transaction's completion, the company's net leverage is expected to stand around 4.0x, with a clear objective to reduce this ratio below 3.0x within 18 months, demonstrating a commitment to financial discipline.

The deal is anticipated to close in the second quarter of 2026, contingent upon receiving the necessary regulatory approvals in both the United States and Canada, along with the satisfaction of customary closing conditions. This integration marks a pivotal moment for Repay, as highlighted by CEO John Morris, who stated the move advances their mission to become a leading bill payment provider by combining complementary market approaches for enhanced growth and client experience.

Rick Watkin, President and CEO of KUBRA, expressed enthusiasm for the next chapter, emphasizing how joining Repay will create a scaled payments platform that adds value for clients and pursues further growth. The acquisition is poised to reshape the competitive dynamics within the bill payment processing sector, offering a more comprehensive solution set to a wider array of businesses and consumers.