Katapult Holdings Inc. (KPLT) jumped over 24% in premarket trading Friday after announcing an all-stock merger with The Aaron's Company Inc. and CCF Holdings LLC, a deal designed to expand access to retail goods and financial services for consumers who typically fall outside traditional lending markets.
The transaction essentially marries three different approaches to serving non-prime customers. Katapult brings its digital lease-purchase platform, Aaron's contributes an extensive network of physical retail stores, and CCF adds consumer credit operations. Together, they're building what executives describe as a diversified omnichannel platform under one corporate umbrella.
How the Deal Breaks Down
When the dust settles, Katapult shareholders will own about 6% of the combined company on a fully diluted basis. The remaining ownership will be divided between Aaron's and CCF Holdings stakeholders. The deal is expected to close sometime in the first half of 2026, assuming regulatory approvals and other standard closing conditions are met.
Here's an interesting structural quirk: Aaron's and CCF Holdings will actually become subsidiaries of Katapult, which will continue trading on Nasdaq under the KPLT ticker symbol. So technically, the smallest player is the one that survives as the parent entity.
The combined operation will be substantial, running approximately 3,000 retail locations while deploying digital and mobile tools to offer flexible purchasing and financing options to customers who often can't access traditional credit.
The Financial Picture
On a pro forma basis, the merged company is expected to generate more than $4 billion in trailing revenue and approximately $450 million in adjusted EBITDA. That's real scale in a market that's historically been fragmented and challenging.
Management believes the increased size, combined with operating efficiencies and a broader base of recurring revenue, will support long-term profitability while improving access to capital. In other words, being bigger should make the business both more efficient and more fundable.
Who's Running the Show
Aaron's CEO Cory Miller will take the reins as chief executive of the combined company, with Russell Falkenstein serving as chief financial officer. CCF Holdings CEO Kyle Hanson will become executive chair of a nine-member board that will include a majority of independent directors.
KPLT Price Action: Katapult Holdings shares were up 24.09% at $7.70 during premarket trading on Friday.
