Priority Tech Grabs Boom Commerce Assets

Payments and banking solution Priority Technology Holdings has acquired the revenue agreements and customer relationships of one of its reseller partners, Boom Commerce.

In addition, Boom Commerce CEO Sabin Burrell and Chief Operating Officer John Hynes will join Priority, the company said in a Tuesday (Aug. 19) press release.

“Boom Commerce is a seamless addition to our direct sales channel,” Priority Chairman and CEO Tom Priore said in the release. “Their proven ability to attract enterprise customers and sell value-added services is well positioned to advance our product sales initiative.”

Priority also announced in the release that it secured a $50 million delayed draw term loan facility, which it will use to finance the purchase of eligible residual receivables and loan receivables and support its expansion into alternative financing solutions.

“We believe the securitization style credit facility is unique for this asset class and a further testament to Priority’s ability to remain at the forefront of the market as we continue to drive value for our partners and stakeholders,” Priority Chief Financial Officer Tim O’Leary said in the release.

These announcements come about eight months after Priority’s acquisition of Rollfi, which added new payroll and benefit solutions to the company’s payments and banking solution.

“This acquisition unites Priority’s robust financial infrastructure with Rollfi’s innovative payroll and benefits solutions, positioning us to deliver even greater value to our customers by enabling new routes to accelerate their cashflow and optimize their working capital,” Priore said in a Jan. 24 press release.

In August 2023, Priority completed its acquisition of bill pay and working capital platform Plastiq, saying this move would combine the companies’ B2B payment solutions and 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.

Priority reported Aug. 7 that its net revenues were up by 9% in the second quarter, reaching just under $240 million, driven by growth in small to medium-sized business acquiring, B2B payables management and enterprise payments.

“Based on strong growth trends and a continued favorable shift in our business mix, I’m confident that Priority can achieve 10% to 12.5% top line revenue growth, which is why we’re increasing the low end of our revenue expectations,” Priore said during an Aug. 7 earnings call.