Priority Technology to Be Taken Private in $1.6B Buyout
CEO-led group to acquire Priority Technology for $8.05 per share, offering a 38% premium to Friday's close.
Key points
- Priority Technology will be acquired in a $1.6 billion CEO-led buyout at $8.05 per share.
- Searchlight Capital Partners provides up to $160 million in guaranteed financing for the deal.
- The company plans to delist from the NASDAQ by the first half of 2027.
Priority Technology Holdings Inc. announced a definitive agreement to be taken private in a $1.6 billion transaction. The deal is led by Chairman and Chief Executive Officer Thomas Priore and an investor group, which will acquire all publicly traded shares for $8.05 in cash.
The acquisition price represents a 38% premium over the company's Friday closing price. This all-cash structure eliminates the risk of financing failure often associated with leveraged buyouts, providing shareholders with a guaranteed payout regardless of market volatility.
Financing secured by institutional partner
Searchlight Capital Partners is backing the transaction with up to $160 million in guaranteed funding. This institutional support ensures the deal can close without reliance on traditional bank loans, which are frequently contingent on market conditions.
The company stated that the independent committee review validated the offer as fair to shareholders. By securing committed capital, the buyer group removes the uncertainty typically present in public equity take-private deals, securing the funds necessary to complete the acquisition.
Strategic shift to long-term planning
Priority Technology expects the transaction to close in the first half of 2027. Upon completion, the company will delist from the NASDAQ, exiting the public markets entirely.
Management indicated that going private will allow leadership to focus on long-term business objectives. This move removes the pressure to meet short-term quarterly earnings expectations, a common constraint for public companies in the payments and banking solutions sector.
Shares trade near 52-week highs
Following the announcement, Priority Technology shares surged 33.45% to $7.77 on Monday morning. According to Benzinga Pro data, the stock is trading near its 52-week high of $7.91.
The immediate price action reflects the market's absorption of the 38% premium embedded in the buyout offer. Investors are positioning their holdings based on the guaranteed cash value per share rather than speculative future earnings growth.
