Veradace Partners calls for Repay to abandon KUBRA acquisition

Veradace Partners L.P., which holds 8.4% of Repay Holdings Corporation (NASDAQ: RPAY), issued an open letter to the company's independent board members calling for termination of the KUBRA Data Transfer acquisition and the addition of two shareholder representatives to the board.

The investment firm stated that Repay's stock declined 17% on the day the KUBRA deal was announced and has underperformed the S&P 500 and Russell 2000 by 20% since the announcement. Veradace said it surveyed major shareholders and found unanimous opposition to the transaction among actively managed investors.

According to the letter, Veradace voiced written opposition to acquisitions on March 11, citing Repay's current valuation. The firm said it attempted to engage with board members since December 2025 but was largely ignored, speaking with only one independent director after the deal announcement.

"The Company has adopted policies that prioritize investor communication through Repay Management," Veradace wrote. "There is strong opposition at this time to M&A given RPAY's depressed valuation and alternative capital allocation options."

Veradace requested that the board immediately add two shareholder representatives to fill recent vacancies and investigate the transaction. The firm also called for the deal to be abandoned and stated that it should not close before voting results from Repay's 2026 Annual Meeting of Stockholders are reported.

The letter was signed by Alex Vezendan, founder and chief investment officer of Veradace Capital Management LLC. Repay is headquartered in Atlanta and provides payment technology solutions.

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