Priority Gets Go-Private Proposal From CEO’s Investor Group

Priority Technology Holdings has received a proposal to take the company private.

The nonbinding proposal came from an investor group led by Thomas Priore, the payment and banking solutions provider’s chairman and CEO, Priority announced in a news release earlier this week. Priore already holds about 58% of the outstanding shares of Priority’s stock, and his group wishes to acquire the remainder.

“There can be no assurance as to whether an agreement relating to any proposed transaction will be reached or as to the terms thereof if an agreement is reached,” the release said.

“The company does not intend to comment further or disclose any developments regarding the Proposal unless and until it deems further disclosure is appropriate or required. The company’s shareholders do not need to take any action at this time.”

The news came days after Priority reported quarterly earnings showing slower growth from its Merchant Solutions business, as macroeconomic factors impacted restaurants, construction and wholesale trade.

That segment’s revenue grew by just 2% during the quarter, management said in an earnings presentation, while Priority’s other two segments enjoyed faster year-over-year revenue gains, with Payables up 14% and Treasury Solutions up 18%.

Priore said during an earnings call that in the Merchant Solutions segment, during the third quarter, “same-store sales decelerated in multiple areas.”

“Alternatively, merchant attrition remained stable, leading us to conclude that macroeconomic factors influencing spending are affecting performance and will likely persist through the remainder of the year,” Priore said.

PYMNTS spoke with the CEO earlier this year about the complexities facing small and medium-sized businesses (SMBs). Construction companies juggle multiple projects at once, though 60% of these firms have under five employees.

Restaurants have to stay on top of several suppliers and distributors to keep inventory on hand and customers fed. Managing payroll and keeping these vendors loyal spotlights the fact that cash flow is critical, particularly if inflation remains elevated.

“From the SMB standpoint, the exposure to tariffs at the supply chain level may actually be pretty small … but the main concern and the damage to small business lies with consumer uncertainty,” Priore told PYMNTS CEO Karen Webster.

That report pointed to PYMNTS Intelligence research showing that nearly 80% of consumers are pulling back on at least some purchases because of this uncertainty, as they look to pad savings or wait to see what comes next.

“Where the rubber’s going to meet the road is what the consumer decisions are,” Priore said, adding that “if consumer spending does slow, it’s going to affect all businesses.”