Priority Technology Holdings has completed its previously announced acquisition of Plastiq.
The includes substantially all of the assets of Nearside Business and PLV, as well as all of the equity of Plastiq Canada and Plastiq, Priority said in a Tuesday (Aug. 1) press release.
The acquisition has the approval of the United States Bankruptcy Court for the District of Delaware, according to the release.
“We are eager to welcome Plastiq’s employees and customers into the Priority family,” Priority Chairman and CEO Thomas Priore said in the release. “Both companies have been focused on building leading B2B payment solutions.”
The acquisition brings together Priority’s payments and banking solutions, and Plastiq’s bill pay and working capital platform, according to the press release.
This combination of their B2B offerings will provide a full suite of working capital solutions that enable businesses of all sizes to optimize their vendor relationships, maximize cash flow flexibility and grow their business, the release said.
“Our mission has always been to accelerate the financial success of small businesses by giving them the access to working capital they need to grow and thrive,” Plastiq CEO and founder Eliot Buchanan said in the release. “As part of Priority, we will be uniquely positioned to offer a full suite of payment and banking capabilities to bring a holistic approach to solving our customers’ biggest working capital issues.”
Priority announced on May 24 that it planned to acquire Plastiq, which filed for Chapter 11 bankruptcy protection on the same day.
At the time, the deal was still subject to bankruptcy court approval and any higher or better offers Plastiq could have received during the auction process.
The two companies were already partners for payment processing, so Priority is well positioned to support Plastiq’s restructuring, serve its customers, and help it scale and optimize its operations, they said when announcing the planned acquisition.
Small business owners who aren’t satisfied with their banks and are scrutinizing the safety of their money are looking for alternative solutions that offer enhanced transparency, faster cash flow and risk diversification, Priore told PYMNTS in an interview posted in May.
“Priority is positioned to handle the growing needs of businesses looking for a bank alternative,” Priore said at the time. “This is through the credibility, backing and solvency of FDIC-insured financial institutions and with the technology of our embedded finance platform that helps businesses streamline their payments and accounting operations.”
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