Acquisition adds BNPL to PROG Holdings’ suite of fintech companies

PROG Holdings, Inc. (NYSE:PRG), the fintech holding company for Progressive Leasing, a leading provider of e-commerce, app-based, and in-store lease-to-own solutions, and Vive Financial, a provider of omnichannel second-look revolving credit solutions, announced the acquisition of Four Technologies, Inc., the creator of Four, an innovative Buy Now, Pay Later (BNPL) platform that allows shoppers to pay for merchandise through four interest-free installments.

Four’s proprietary platform capabilities and its rapidly growing base of customers and retailers expand PROG Holdings’ ecosystem of fintech offerings by introducing a payment solution that is quickly growing in the global marketplace. Shoppers use Four to purchase furniture, clothing, electronics, health and beauty, footwear, jewelry, and other consumer goods from retailers across the United States.

“Acquiring Four adds an established BNPL platform that we believe will accelerate our market reach and further diversify our consumer fintech offerings,” said PROG Holdings President and CEO Steve Michaels. “Combining Four with Progressive Leasing and Vive Financial, our lease-to-own and revolving credit companies, builds upon our direct-to-consumer growth strategy and delivers an exceptional value proposition to retailers looking to offer their customers additional payment options.”

Terms of the transaction were not disclosed. PROG Holdings expects to discuss the transaction in more detail during its call to discuss its financial results for the second quarter of 2021 on Thursday, July 29, 2021, at 8:30 A.M. ET. The Company does not anticipate updating its 2021 outlook in connection with the acquisition.

About Four Technologies

Four Technologies is a Miami, Florida-based financial technology company founded in 2018 that provides consumers with Buy Now, Pay Later (BNPL) solutions. Its innovative platform, Four, allows retailers to provide greater payment flexibility to shoppers through the option to pay for merchandise through four interest-free installments, while enhancing the retailers’ revenues through increased transaction volume and ticket size. Retailers can immediately add Four to their payment options by contacting the company at https://retailer.paywithfour.com/. More information on Four can be found on the company’s website, https://paywithfour.com.

About PROG Holdings, Inc.

PROG Holdings, Inc. (NYSE:PRG) is a fintech holding company headquartered in Salt Lake City, UT, that provides transparent and competitive payment options to credit challenged consumers. The Company owns Progressive Leasing, a leading provider of e-commerce, app-based, and in-store point-of-sale lease-to-own solutions, and Vive Financial, an omnichannel provider of second-look revolving credit products. Progressive Leasing has helped millions of consumers acquire furniture, appliances, jewelry, electronics, mattresses, cell phones, and other large-ticket products consumers need by utilizing a technology-based proprietary platform that provides instant decisioning results. Vive Financial offers consumers who may not qualify for traditional prime lending products a variety of second-look, revolving credit products originated through federally insured banks, including private label and Vive-branded credit cards. More information on PROG Holdings can be found on its website, https://progholdings.com.

Forward-Looking Statements

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this news release regarding our business that are not historical facts are "forward-looking statements" that involve risks and uncertainties which could cause actual results to differ materially from those contained in the forward-looking statements. Such forward-looking statements generally can be identified by the use of forward-looking terminology, such as "believe”, “expect”, “anticipate,” and similar terminology. Statements in this press release that are "forward-looking" include, without limitation, statements about (i) accelerating our market reach through Four’s offerings; (ii) delivering an exceptional BNPL value proposition to retailers, including our existing POS partners; and (iii) the impact of our acquisition of Four on our 2021 outlook. These risks and uncertainties include factors such as (i) the risk that the benefits expected from our acquisition of Four Technologies, Inc. (“Four”) may not be fully realized or may take longer to realize than expected; (ii) the effects of any increased expenses or unanticipated liabilities incurred as a result of, or due to activities related to, our acquisition of Four; (iii) Four’s business model differing significantly from Progressive Leasing's and Vive’s, which creates specific and unique risks for the Four business, including Four’s exposure to the unique regulatory risks associated with the laws and regulations that apply to its business; (iv) Four’s inability to maintain, protect, and enforce its intellectual property and other proprietary rights, including with respect to its proprietary technology, and to obtain licenses to use the intellectual property and proprietary rights of others; (v) the impact of the COVID-19 pandemic and related measures taken by governmental or regulatory authorities to combat the pandemic, including the impact of the pandemic and such measures on (a) the retailers who offer Four’s BNPL payment solution to customers and (b) Four’s customers, including their ability and willingness to satisfy their obligations under their loan agreements; (vi) changes in the enforcement of existing laws and regulations and the adoption of new laws and regulations that may unfavorably impact our businesses, including laws and regulations related to BNPL offerings; and (vii) the other risks and uncertainties discussed under "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, which was filed with the Securities and Exchange Commission on February 26, 2021. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances after the date of this press release.

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"Acquiring Four adds an established BNPL platform that we believe will accelerate our market reach and further diversify our consumer fintech offerings,” - Steve Michaels, PROG Holdings President and CEO.