Repay Holdings Completes $372M KUBRA Acquisition, Secures $500M Term Loan, Raises FY2026 Outlook

summarizeSummary

Repay Holdings completed the $372 million acquisition of KUBRA, funded by a new $500 million term loan, and raised its full-year 2026 financial outlook, signaling a major strategic expansion despite increased initial leverage.

check_boxKey Events

• Acquisition Completion

  Repay Holdings completed the acquisition of KUBRA Holdings, Inc. and KUBRA Data Transfer Ltd. for approximately $372 million in cash. This follows the definitive agreement announced on March 30, 2026.

• New Debt Financing Secured

  The acquisition was funded by a new $500 million senior secured first lien term loan facility and a $100 million undrawn revolving credit facility. This refinances the existing credit agreement.

• Increased Leverage with Deleveraging Plan

  Combined net leverage is approximately 4.0x at closing, with a target to reduce it below 3.0x within 18 months.

• Raised FY2026 Outlook

  The company raised its full-year 2026 outlook, expecting revenue of $490-500 million (up from $340-346 million) and Adjusted EBITDA of $168.5-176 million (up from $141-146 million), incorporating KUBRA's contributions.

auto_awesomeAnalysis

Repay Holdings has completed its acquisition of KUBRA for $372 million, a strategic move that significantly expands its market position in consumer bill payments. This acquisition, funded by a new $500 million senior secured term loan and cash on hand, is expected to substantially increase revenue and Adjusted EBITDA, with projected Free Cash Flow accretion of 25% by 2028. While the transaction increases initial net leverage to 4.0x, the company aims to reduce this below 3.0x within 18 months. This event is critical as it reshapes Repay's financial profile and strategic direction amidst ongoing activist investor pressure.