Priority Technology Holdings, Inc. completed the acquisition of Substantially All Assets from Plastiq, Inc. for approximately $37 million.
July 30, 2023
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Priority Technology Holdings, Inc. (NASDAQ: PRTH) entered into an agreement to acquire Substantially All Assets of Plastiq, Inc. $27.5 million on May 23, 2023. The agreement is subject to Bankruptcy Court approval. As on August 1, 2023, the transaction is approved by United States Bankruptcy Court for the District of Delaware. Craig Grear and Matthew Lunn of Young Conaway Stargatt & Taylor acted as legal advisor to Plastiq. James W. Stevens, Jeffery Banish, Matt Brooks, Gary Marsh and James Schutz of Troutman Pepper Hamilton Sanders LLP acted as legal advisor to Priority Technology Holdings, Inc. Joseph Berry, Peter Wirth, Ashwan Bimbhet and Rajib Hasan of Stifel-KBW served as financial advisors to Priority Technology Holdings, Inc.
Priority Technology Holdings, Inc. (NasdaqCM:PRTH) completed the acquisition of Substantially All Assets from Plastiq, Inc. for approximately $37 million on July 31, 2023. The total purchase consideration of approximately $43.8 million. The total purchase consideration included $28.5 million in cash and the remaining consideration is in the nature of deferred or contingent consideration and certain equity interest in the acquiring entity. The cash consideration for the purchase was funded by borrowings from the Company's revolving credit facility. As of November 9, 2023 the total purchase consideration included $28.5 million in cash, Contingent consideration payments $8.419 million and Common equity of acquiring entity 330,000.
Priority Technology Holdings, Inc. is a solution provider in payments and banking as a service (BaaS) industry, operating at a scale with 860,000 active customers across its small and medium-sized businesses (SMB), business-to-business and enterprise customer channels. The Company has three segments. SMB Acquiring Solutions segment provides full-service acquiring and payment-enabled solutions for business-to-consumer transactions, leveraging its proprietary software platform, distributed through independent sales organizations (ISO), direct sales and vertically focused independent software vendor (ISV) channels. B2B Payables segment provides accounts payable (AP) automation solutions to corporations, software partners and industry financial institutions (FI), including Citibank and Mastercard. Enterprise Payments and BaaS segment provides embedded finance and BaaS solutions for customers to modernize legacy platforms and accelerate software partners' strategies to monetize payments.