Katapult Holdings shares surge 33.44% premarket after announcing merger with Aaron's and CCF Holdings to form omni-channel platform for non-prime consumers.

Katapult Holdings surged 33.44% in premarket trading following the announcement of a definitive all-stock merger with The Aaron’s Company and CCF Holdings. The transaction, expected to close in the first half of 2026, will create a combined omni-channel platform targeting non-prime consumers, leveraging Katapult’s digital capabilities and Aaron’s and CCF’s retail and customer bases. The merger highlights significant scale, with pro forma LTM revenue exceeding $4 billion and Adjusted EBITDA of ~$450 million, while emphasizing enhanced financial strength, operational synergies, and expanded access to financial solutions. Despite dilution concerns for existing Katapult shareholders (who will own 6% of the combined entity), the strategic alignment and growth potential driven by the merger appear to have fueled investor optimism, directly correlating with the sharp premarket price increase.