PROG Holdings Expands Market Reach with Major Benefit Provider Acquisition

Investor attention has turned to PROG Holdings following its announcement of a definitive agreement to acquire Purchasing Power, a prominent employee benefit provider. Valued at $420 million, the deal struck in December is positioned to significantly broaden the fintech firm's service ecosystem.

This strategic move comes on the heels of a robust third-quarter 2025 performance, where PROG Holdings surpassed market expectations. The company's subsidiary, Four Technologies, reported its third consecutive quarter of positive adjusted EBITDA. In a separate but concurrent display of financial health, PROG recently distributed a quarterly cash dividend of $0.13 per share.

Company leadership underscores the acquisition's complementary nature. PROG Holdings' CEO, Steve Michaels, characterized Purchasing Power as a highly synergistic platform that will diversify the company's product offerings. The transaction, slated for completion in early 2026, will be funded through a combination of cash on hand and debt financing. For his part, Purchasing Power CEO Trey Loughran anticipates that access to PROG's resources will accelerate his company's growth trajectory.

Should investors sell immediately? Or is it worth buying PROG Holdings?

Acquisition Details and Forward Integration

The core objective of purchasing Purchasing Power is to unlock access to a wider consumer base through established employer channels. The target company contributes a platform encompassing over 7 million eligible employees and maintains partnerships with more than 360 employers. Integrating this network is expected to create a new, scalable customer acquisition channel for PROG Holdings' existing brands.

Market participants are likely to monitor the integration process closely. The next significant update on business performance is scheduled for the quarterly earnings release between February 18 and 24, 2026. This report is also anticipated to provide updated corporate guidance reflecting the impact of this substantial acquisition.