Priority is a payments technology company that leverages a purpose-built platform to enable clients to collect, store and send money, operating at scale
Priority Technology partners with Plastiq. (Credit: rupixen.com on Unsplash)
Priority Technology Holdings, Inc. (NASDAQ: PRTH) (“Priority”), a leading platform for unified commerce that delivers integrated payments and banking at scale, announced today that it has entered into a definitive agreement (“the Purchase Agreement”) as the stalking horse bidder to acquire substantially all of the assets of Plastiq, Inc and certain of its affiliates in its Chapter 11 Restructuring (the “Transaction”). The Purchase Agreement is subject to Bankruptcy Court approval.
Plastiq, Inc., is a B2B payments platform that offers bill pay and instant access to working capital to small and midsize businesses. “The synergies between our respective B2B payment assets will help business owners optimize their cash flow and working capital strategies,” said Thomas Priore, Chairman and CEO of Priority. “Our decision to enter into this agreement was simple. Strategically speaking, Plastiq’s buyer-driven B2B product suite is a natural complement to our CPX Automated Payables offering, and the company has an extremely talented team with a mindset that will fit naturally into the collaborative and execution-oriented culture at Priority. Since we are already partners for payment processing, we are well positioned to help support the restructuring and Plastiq’s customers as the company emerges stronger from the process.”
“We are excited that Priority believes in Plastiq’s business and the potential for the future of Plastiq, Powered by Priority. We know it can be a great fit for our customers and employees as we drive our operation forward,” said Eliot Buchanan, CEO of Plastiq. “As a leader in B2B and Enterprise payments, Priority’s Passport financial tool set already has the resources to advance our offering and we are encouraged by the potential to deliver Plastiq’s solutions to Priority’s over 250 thousand merchants and distribution partners within its SMB acquiring division.”
The existing partnership and potential to acquire the assets of Plastiq through the restructuring process is just one more example of the unique capabilities of Priority and our Passport payments and banking operating engine,” continued Priore. “We will quickly help Plastiq optimize and scale operations, immediately increase distribution channels, and provide complimentary B2B resources and strategic vision to drive their success and our investors’ long term enterprise value. Just as we have done in the past, acquiring under-optimized payment assets like Cynergy Data and Rent Payments.com and making them high performers, we are confident that the combined vision we have with Plastiq’s employees and founders will create exceptional value.”
Plastiq filed voluntary petitions for relief under Chapter 11 of Title 11 the U.S. Code in the Bankruptcy Court on May 24, 2023. The Purchase Agreement is subject to certain customary closing conditions, including certain orders being entered by the Bankruptcy Court. The Purchase Agreement is also subject to higher and better offers Plastiq may receive during the auction process.
Source: Company Press Release