Benzinga | Mar 8, 2021 09:05AM EST

Priority Technology To Acquire Finxera

* Payments technology company Priority Technology Holdings Inc (NASDAQ: PRTH) and fintech industry pioneer Finxera Holdings inked a merger agreement. Finxera will operate as a wholly-owned subsidiary of Priority under the arrangement.

* The financial terms of the transaction were not disclosed.

* Priority's omnichannel payments platform supports proprietary and third-party software applications. Priority's offering combines modern cloud infrastructure and operational expertise to deliver supreme Payment Infrastructure as a Service (PIaaS). Finxera's BaaS technology enables the rapid integration of banking services into business applications to establish and manage bank accounts for collecting, storing, and sending money.

* 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 under the arrangement.

* The combined platform will be equipped to handle payments via card, ACH, or even blockchain and manage payment operations including onboarding, risk, compliance, and client service, thereby becoming a one-stop-shop for payments and virtual bank account management as per Priority CEO Tom Priore.

* Priority Tech's closing cash balance amounted to $58.8 million as of September 30, 2020.

* Price action: PRTH shares are up 4.41% at $7.1 in the pre-market session on the last check Monday.