Priority acquires dealer merchant services assets to expand auto sector reach

ALPHARETTA, Ga. - Priority Technology Holdings, Inc. (NASDAQ:PRTH), a payments technology company with annual revenue of $918.56 million, announced Thursday it has completed the acquisition of certain assets from DMSJV, LLC (Dealer Merchant Services or DMS), a reseller in the auto and truck dealership sector. The company partially financed the transaction with a $35 million increase to its existing $1.0 billion term loan.

The acquisition includes revenue agreements and customer relationships from DMS, with the leadership team of Amberly Allen and Laura Sherman joining Priority. The company expects the acquisition to generate approximately $3 million in incremental revenue and over $1 million in incremental adjusted EBITDA in Q4 2025, according to Priority’s Chief Financial Officer Tim O’Leary. According to InvestingPro data, Priority currently generates $189.81 million in EBITDA, and analysts have recently revised their earnings expectations upward for the upcoming period.

O’Leary also provided an update on Priority’s recently closed Boom Commerce acquisition, noting that approximately $2.5 million of the originally expected $5 million revenue impact for 2025 will be recorded as a reduction in the company’s cost of sales, while maintaining the expected $6 million adjusted EBITDA impact.

"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," said Tom Priore, Chairman and CEO of Priority, in a statement released by the company.

DMS Founder and Managing Partner Amberly Allen stated that the company plans to expand its compliant surcharge program with Priority’s payables and treasury management solutions.

Wellesley Hill Financial, LLC and Zahara Alarakhia, PLLC served as advisors to Dealer Merchant Services, while Maynard Nexsen PC advised Priority on the transaction.

Priority Technology Holdings provides payments and banking solutions through its connected commerce platform. With a market capitalization of $549.84 million and an overall financial health score of "GOOD" according to InvestingPro, the company appears undervalued based on its Fair Value analysis. Investors can access detailed valuation metrics and 8 additional ProTips through InvestingPro’s comprehensive research report, which provides deep-dive analysis of Priority’s financial position and growth prospects.

In other recent news, Priority Technology Holdings Inc. has reported strong financial results for the second quarter of 2025. The company posted an earnings per share of $0.26, significantly outperforming Wall Street’s forecast of $0.17, marking a 52.94% surprise. Revenue also slightly exceeded expectations, reaching $239.8 million compared to the projected $239.63 million. In another development, Priority Technology completed the acquisition of Boom Commerce’s assets and secured a $50 million credit facility, incorporating Boom’s CEO and COO into its team. TD Cowen has raised its price target for Priority Technology to $11.00 from $10.00, maintaining a Buy rating, citing the company’s solid quarterly performance. The acquisition of Boom Commerce was valued at approximately $103 million, which includes earnouts, and is expected to contribute significantly to Priority’s future earnings. These developments reflect Priority Technology’s strategic moves and effective execution amid stable market conditions.

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