We are advising Katapult on the transaction

Davis Polk is advising Katapult Holdings, Inc. on its combination with The Aaron’s Company, Inc. and CCF Holdings LLC in an all-stock transaction. Under the terms of the agreement, upon close of the transaction, current Katapult stockholders will own 6% of the combined company on a fully diluted basis and stakeholders of Aaron’s and CCF Holdings will own the remainder. Aaron’s and CCF Holdings will be subsidiaries of Katapult, which is expected to continue trading on NASDAQ under the ticker symbol “KPLT.” The transaction is expected to close in the first half of 2026, following the receipt of requisite stockholder and regulatory approvals and the satisfaction of other customary closing conditions.

Katapult is a technology driven lease-to-own platform that integrates with omni-channel retailers and e-commerce platforms to power the purchasing of everyday durable goods for underserved U.S. non-prime consumers. Through Katapult’s point-of-sale integrations and innovative mobile app featuring Katapult Pay, consumers who may be unable to access traditional financing can shop a growing network of merchant partners. Katapult operates exclusively in the United States and its platform is available for use by consumers in 46 states and the District of Columbia.

Aaron’s is a leading, technology-enabled, omni-channel provider of lease-to-own and retail purchase solutions of furniture, electronics, appliances and other home goods across its brands: Aaron’s and BrandsMart. Aaron’s offers direct-to-consumer lease-to-own and retail solutions through its approximately 1,200 company-operated and franchised stores in 47 states and Canada, as well as its e-commerce platform, Aarons.com. BrandsMart is a leading appliance and consumer electronics retailer in the southeast United States and one of the largest appliance retailers in the country with stores in Florida and Georgia.

CCF Holdings is a provider of alternative financial services to unbanked and underbanked customers. CCF Holdings was formed in 2018 and succeeded the business and operations of Community Choice Financial Inc. As of June 30, 2025, CCF Holdings owned and operated 1,598 retail locations and offered financial services online across 30 states. Through its network of retail locations and online, CCF Holdings provides customers with a variety of financial solutions and services, including secured and unsecured, short-term and medium-term consumer loans, check cashing, prepaid debit cards and other services that address the specific financial needs of its customers.

The Davis Polk corporate team includes partner Paul S. Scrivano and associates Joseph G. Marano, Dove Barbanel and Joon Ko. Partner Nicole Brookshire is providing capital markets advice. Partner Caitlin L. Wood is providing equity derivatives advice. Partner Jennifer S. Conway and counsel Christina Andersen are providing executive compensation advice. Partner Corey M. Goodman is providing tax advice. Partner Hilary Dengel is providing sponsor finance advice. Members of the Davis Polk team are based in the Northern California and New York offices.

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