Kubra Acquisition by Repay: Shareholder Revolt Over $372 Million Deal

Repay Holdings moved to purchase Kubra Data Transfer for $372 million, drawing attention from major investor Veradace Partners, which holds 8.4% of the company.

Shareholder Opposition to Repay’s Agreement to Acquire Kubra

• Veradace Partners released a public letter rejecting the transaction and claiming broader investor resistance.
• Veradace urged Repay’s board to scrap the deal, seat two shareholder-backed members, and examine leadership’s decision-making.
• Veradace stated that one unnamed director had not been briefed on investor objections.
• The investor pressed the board to act swiftly, collaborate with owners on governance issues, and halt what it views as a higher-risk, lower-return use of capital.

Company Rationale and Market Context for the Bill Payment Platform Deal

Repay, a public company offering integrated payment processing and billing software to commercial clients across multiple verticals, said on March 30 it signed a definitive agreement funded with cash on hand and debt to acquire Kubra, which focuses on utilities and government accounts.

The company’s announcement said combining Repay’s technology platform with Kubra’s industry specialties, partnerships, and go-to-market approach would create a complementary offering.

Veradace said Kubra’s size, pricing, and leverage warranted closer scrutiny.

In a contested deal, investors often look for detailed disclosure on financing terms and integration assumptions before endorsing added leverage.

Kubra’s size, pricing, and leverage are central investor concerns.

Repay’s shares have fallen over the past year.

A Repay spokesperson did not immediately respond to a request for comment.