Priority Technology Holdings, Inc. (NASDAQ: PRTH), a provider of payments and banking solutions, has successfully completed the acquisition of certain assets of Dealer Merchant Services (DMSJV, LLC), a reseller specializing in the auto and truck dealership sector. This transaction will integrate DMS’s leadership, including Amberly Allen and Laura Sherman, into Priority, expanding its presence within the automotive industry.
A portion of the acquisition consideration for DMSJV, LLC was financed with a $35 million increase to Priority’s existing $1.0 billion broadly syndicated term loan. The acquisition included substantially all of DMS’s assets, such as revenue agreements and customer relationships. Priority Technology Holdings offers a connected commerce platform for payables, merchant services, and banking and treasury solutions, aiming to streamline financial operations and unlock revenue opportunities for businesses.
Tom Priore, Chairman and CEO of Priority, stated his enthusiasm for adding the Dealer Merchant Services team and its integrated software and distribution capabilities in the automotive dealership arena. He noted that emerging trends in auto ownership among consumers and the consolidation within the dealership community position the combined entity to deliver value to the dealership community and foster growth for investors.
Amberly Allen, Founder and Managing Partner of DMS, expressed her team’s excitement to expand their compliant surcharge program using Priority’s payables and treasury management solutions, which are expected to enhance dealer profitability. She emphasized that dealers anticipate high-quality service and a partner dedicated to their growth, a promise the combination with Priority aims to fulfill.
Tim O’Leary, Chief Financial Officer of Priority, provided financial expectations, projecting approximately $3 million in incremental revenue and just over $1 million in incremental adjusted EBITDA for the fourth quarter of 2025 from the DMS acquisition. O’Leary also updated on the recently closed Boom Commerce acquisition, clarifying that approximately $2.5 million of the initially anticipated $5 million revenue impact for 2025 will be recognized as a reduction in Priority’s cost of sales, with no change to the expected $6 million adjusted EBITDA impact for 2025.
Wellesley Hill Financial, LLC served as financial advisor, and Zahara Alarakhia, PLLC served as legal advisor to Dealer Merchant Services. Maynard Nexsen PC provided legal counsel to Priority.
