Priority Technology Holdings, Inc., (NASDAQ:PRTH) the payments and banking solution that streamlines collecting, storing, lending and sending money to unlock revenue opportunities, today announced the successful closing of the acquisition of certain assets of DMSJV, LLC ("Dealer Merchant Services" or "DMS"). A portion of the acquisition consideration was financed with a $35 million increase to the Company's $1.0 billion broadly syndicated term loan.
Priority acquired substantially all of the assets, including the revenue agreements and customer relationships of DMS, a leading vertically focused reseller in the auto and truck dealership sector, in the transaction. The Dealer Merchant Services leadership team of Amberly Allen and Laura Sherman will join Priority.
"We are excited to add the team at Dealer Merchant Services and its vertically focused integrated software and distribution in the automotive dealership arena to Priority," said Tom Priore, Chairman and CEO of Priority. "We believe that emerging trends for auto ownership among consumers and the evolving needs of dealerships as the community consolidates, position the combination of our payments and banking technology to deliver exceptional value to the dealership community that DMS serves and tremendous growth to our investors."
"We are thrilled to expand our compliant surcharge program with Priority's payables and treasury management solutions to help our dealers increase profitability," said Amberly Allen, DMS Founder and Managing Partner. "Our dealers expect white-glove service and a partner focused on their growth and our combination with Priority will help to deliver on those promises."
"We expect the acquisition of DMS to provide approximately $3 million of incremental revenue and just over $1 million of incremental adjusted EBITDA in Q4 2025," said Tim O'Leary, Chief Financial Officer of Priority. "We also want to provide an update on the recently closed Boom Commerce acquisition. Based on further analysis, we have determined that from an accounting standpoint approximately $2.5 million of the originally expected 2025 revenue impact of $5 million will be recorded as a reduction in Priority's cost of sales. There are no changes to expectations for an adjusted EBITDA impact of $6 million in 2025."
Wellesley Hill Financial, LLC served as financial advisor and Zahara Alarakhia, PLLC served as legal advisor to Dealer Merchant Services. Maynard Nexsen PC served as legal advisor to Priority.
About Priority
Priority delivers payments and banking solutions that unlock revenue opportunities for businesses through its connected commerce platform for payables, merchant services, and banking & treasury solutions. The Priority Commerce Engine accelerates cash flow, and optimizes working capital to unlock growth, reduce costs and create new revenue opportunities. Learn more about Priority at prioritycommerce.com
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