Repay Stock Falls As $372M Deal Fails To Impress Investors

• In connection with the transaction, Repay has received a debt commitment letter from Truist Bank for a $500 million term loan, along with a $100 million undrawn revolving credit facility. 
• RPAY expects the transaction to close in the second quarter of 2026.
• It expects the transaction to unlock additional value with expected revenue opportunities of approximately $5+ million by 2028.

Repay Holdings (RPAY), a provider of integrated payment processing solutions, on Monday announced a definitive agreement to acquire Kubra Data Transfer for approximately $372 million in an all-cash transaction. 

The company said that the acquisition will be financed with a combination of cash on hand and debt financing.

Shares in the company fell nearly 1% during extended hours of trading on Monday. 

More Details

In connection with the transaction, RPAY has received a debt commitment letter from Truist Bank for a $500 million term loan, along with a $100 million undrawn revolving credit facility. 

Repay said that the deal is expected to generate approximately $15+ million of annual run-rate costs synergies and approximately $5+ million of technology savings over the next three years through combining operations, platform consolidation, and other scale efficiencies. 

“Today’s announcement advances REPAY on our transformational journey to become a leading bill payment provider. The combination brings together highly complementary go-to-market approaches, creating robust opportunities to enhance growth,” said John Morris, Co-Founder and Chief Executive Officer of Repay.

The transaction is subject to regulatory approvals in the U.S. and Canada and certain customary closing conditions. The company expects the transaction to close in the second quarter of 2026.

Expected Gains

Repay expects the transaction to unlock additional value with expected revenue opportunities of approximately $5+ million by 2028 as RPAY benefits from offering bill presentment, communications services, a payment engine, and core processing solutions across all clients.

It also expects free cash flow accretion of 25% by 2028.

Retail Reaction

Retail sentiment around RPAY stock trended in ‘neutral’ territory amid ‘normal’ message volume. 

Shares in the company have fallen around 15% so far this year.