{"id":452387,"date":"2021-03-08T07:03:46","date_gmt":"2021-03-08T12:03:46","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=452387"},"modified":"2021-03-08T07:03:46","modified_gmt":"2021-03-08T12:03:46","slug":"priority-technology-holdings-inc-to-acquire-finxera-to-create-the-premier-payments-and-banking-as-a-service-platform","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/priority-technology-holdings-inc-to-acquire-finxera-to-create-the-premier-payments-and-banking-as-a-service-platform\/","title":{"rendered":"Priority Technology Holdings, Inc. to Acquire Finxera to Create the Premier Payments and Banking as a Service Platform"},"content":{"rendered":"
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Deal is Immediately Accretive with Pro Forma 2021 Revenue of approximately $540 million and Adjusted EBITDA of approximately $130 million<\/h2>\n

$300 million of Equity Investments from a combination of funds managed by Ares Management and Finxera Shareholders<\/h2>\n

Financing Includes Refinancing of Priority Debt to 4.25x<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

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\n ALPHARETTA, Ga.<\/span> and SAN JOSE, Calif.<\/span>, March 8, 2021<\/span> \/PRNewswire\/ — Priority Technology Holdings, Inc. (NASDAQ:\u00a0PRTH) (“Priority”), a leading payments technology company, and Finxera Holdings, Inc. (“Finxera”), a pioneer in the fintech industry that launched and operated one of the first Banking as a Service (“BaaS”) platforms, today announced they have entered into a definitive agreement to merge. Finxera will operate as a wholly owned subsidiary of Priority. The transaction is expected to close in the third quarter of 2021.<\/p>\n

Priority’s omni-channel payments platform supports proprietary and third-party software applications built for businesses of any size. Priority’s offering combines modern cloud infrastructure and operational expertise to deliver unparalleled Payment Infrastructure as a Service (“PIaaS”) to organizations with complex payment operation needs, including low friction merchant boarding, underwriting, risk management, and compliance monitoring. Finxera’s BaaS technology allows for the rapid integration of banking services into business applications to establish and manage bank accounts for the collection, storage, and sending of money. \u00a0When combined, Priority will offer clients turn-key merchant services, payment facilitation, card issuing, automated payables, virtual banking, and e-wallet tools supported by its best-in-class client service, risk management, underwriting and compliance on a single platform. <\/p>\n

“The Finxera acquisition accelerates Priority’s position as a market leader in the convergence of payments and banking as a service” said Tom Priore<\/span>, Chairman and Chief Executive Officer of Priority. “Our combined platform will be equipped to take and make payments whether on card, ACH, or even blockchain and manage all aspects of payment operations like onboarding, risk, compliance, and client service for our clients.\u00a0 Together we will be a one stop-shop for payments and virtual bank account management that today’s merchants and modern software companies are seeking in order to manage and monetize their payment networks.” <\/p>\n

To learn more about the combined technology platform and financial profile please click on the following link.
http:\/\/prth.com\/assets\/Mar-8-IR-Presentation.pdf<\/a>.<\/p>\n

The Company will host a conference call and webcast to discuss the Finxera acquisition. A
question-and-answer session will follow.<\/p>\n

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\n Monday, March 8, 2021<\/span>
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\n 4:00 pm Eastern Time<\/span>
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Phone: US\/Canada<\/span>: (877) 501-3161 or International: (786) 815-8443<\/b>\n <\/p>\n

Internet webcast link can be accessed at https:\/\/edge.media-server.com\/mmc\/p\/x36gfbdx<\/a>
and will also be posted, along with an accompanying slide presentation, in the “Investor
Relations” section of the Company’s website at www.PRTH.com<\/a>. An audio replay of the call will be available shortly after the conference\u00a0call until March 11, 2021<\/span> at 7:00 pm Eastern Time<\/span>. To listen to the audio replay, dial (855) 859-2056 or (404) 537-3406 and enter conference ID number 6988859. Alternatively, you may access the webcast replay in the “Investor Relations” section of the Company’s website at www.PRTH.com<\/a>.<\/p>\n

“Combining with Priority accelerates our original vision to be a disruptive technology in the convergence of payments and banking as a service,” said Sanjoy Goyle<\/span>, Founder and Chief Executive Officer of Finxera. “We have been hugely impressed with the breadth of Priority’s payments platform, operations, and strategic vision since integrating with the Priority MX platform last year. We look forward to the further combination of the BaaS technology and operations.”<\/p>\n

Finxera shareholders, including funds managed by Stone Point Capital LLC (“Stone Point<\/span>“) and Finxera management team, will retain meaningful equity positions in the combined enterprise, with Goyle and Finxera’s Co-Founder and Chief Technology Officer Praveer Kumar<\/span>, taking on prominent roles going forward.\u00a0\u00a0 “We are excited to add Stone Point<\/span> as a new long-term shareholder of Priority,” said Priore.\u00a0 “Stone Point<\/span> has an exceptional track record of success as a financial services investor; their ongoing participation will be tremendously valuable to our growing enterprise.”<\/p>\n

\n Financing
<\/u>The merger financing with Finxera includes up to $50 million<\/span> of Priority common stock to be issued to certain existing shareholders. Additionally, Priority has executed a commitment from Truist for a total debt facility of $630 million<\/span> to refinance a portion of Priority’s existing debt, to add a new revolving credit facility and to finance a portion of the Finxera closing.<\/p>\n

Simultaneous with entry into the merger agreement, Priority obtained an up to $250 million<\/span> preferred equity commitment from funds managed by certain affiliates of Ares Management to fund a portion of the refinancing of Priority’s existing credit facilities and the acquisition of Finxera, with the remainder to be used to fund future acquisitions.\u00a0 “We are pleased to continue our relationship with Truist and to expand our relationship with Ares Management and Stone Point Capital,” said Priore.<\/p>\n

\n Pro-Forma Highlights
<\/u>Based upon forecasted 2021 financial results of Priority and Finxera, the pro forma full year 2021 results of the combined company are expected to be:<\/p>\n