REPAY Acquires KUBRA for $372 Million

REPAY has finalized its acquisition of KUBRA for $372 million in cash, a strategic move that consolidates its stance in the consumer bill payment sector. The transaction marks a significant expansion for REPAY, enabling the company to extend its reach across a substantial portion of U.S. and Canadian households and to boost its annual payment processing volume.

The acquisition, originally agreed upon on March 30, 2026, is structured to enhance REPAY's operational and financial dynamics. The integration of KUBRA is projected to yield more than $15 million in annual cost synergies and $5 million in technology savings over the next three years due to operational integration and platform consolidation. REPAY anticipates actualizing $8 million of these synergies within the current year. Furthermore, the combined entity foresees generating more than $5 million in revenue through cross-selling opportunities by 2028.

This strategic acquisition is intended to significantly enhance REPAY’s market presence in non-discretionary billing categories. The expected operational efficiencies and new revenue streams are designed to bolster REPAY’s financial performance, projecting approximately 25% free cash flow accretion by 2028. REPAY has articulated a comprehensive value creation strategy supported by this acquisition, aimed at optimizing synergy realization and advancing integration steps.

From a market perspective, REPAY, with KUBRA under its umbrella, will now engage monthly with more than 40% of households in the U.S. and Canada, processing payments exceeding $130 billion annually. This move underscores the intensifying competition in the digital payment space, where companies are aggressively pursuing scale and technology integration to capture recurring revenue opportunities.

Financially, REPAY's post-acquisition net leverage is approximately 4.0x, which the company plans to reduce below 3.0x within 18 months. The acquisition was financed through a combination of debt and cash reserves, involving a $500 million senior secured term loan and a $100 million undrawn revolving credit facility. The acquisition has led REPAY to revise its financial outlook for 2026, with expectations of revenue between $490 million to $500 million and adjusted EBITDA ranging from $168.5 million to $176 million.

REPAY plans to further elucidate its strategic vision and financial goals at its upcoming Investor Day in December 2026, where additional insights into its integration strategies and market positioning will be provided.