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This acquisition is part of Priority's strategy to enhance its unified commerce engine and provide comprehensive financial services to its clients. The integration of Rollfi's capabilities is expected to offer a more robust suite of tools for businesses looking to manage their financial operations more effectively. While the stock shows high price volatility, Priority maintains a solid current ratio of 1.04, indicating healthy short-term liquidity to support its growth initiatives. While the stock shows high price volatility, Priority maintains a solid current ratio of 1.04, indicating healthy short-term liquidity to support its growth initiatives.
The merger aims to combine Priority's financial infrastructure with Rollfi's payroll solutions to enhance value for customers by offering new ways to improve cash flow and optimize working capital. Rollfi's technology enables banks, accountants, and vertical SaaS providers to incorporate payroll and benefits services into their platforms quickly and efficiently.
Tom Priore, CEO of Priority, emphasized the importance of payroll in working capital management and expressed confidence that the acquisition will deliver greater value to Priority's customers. Kirubha Perumalsamy, founder of Rollfi, echoed this sentiment, stating that the partnership with Priority would allow Rollfi to expand its mission and drive innovation.
Priority's platform is designed to help businesses manage payments, lending, and funds seamlessly. The company's services include payables, merchant services, and banking and treasury solutions, all aimed at streamlining financial operations and fostering business growth. With an EBITDA of $175.82 million and revenue growth of 16.08%, Priority appears undervalued according to InvestingPro's Fair Value analysis. Discover detailed insights and 8 additional ProTips about PRTH with an InvestingPro subscription, including exclusive access to comprehensive Pro Research Reports covering 1,400+ top stocks.
Rollfi's offering comprises white-label solutions and APIs that facilitate the integration of payroll and benefits services, helping businesses to generate new revenue streams, improve customer retention, and gain insights from payroll data.
This acquisition is part of Priority's strategy to enhance its unified commerce engine and provide comprehensive financial services to its clients. The integration of Rollfi's capabilities is expected to offer a more robust suite of tools for businesses looking to manage their financial operations more effectively.
The information for this report is based on a press release statement.
In other recent news, Priority Technology Holdings Inc. has been the subject of financial analysis and has shown strong growth in its third quarter of 2024. Lake Street Capital Markets has adjusted its outlook on the company, increasing the price target to $13.00 from $8.00 and maintaining a Buy rating. This adjustment follows Priority Technology's announcement of the full redemption of its remaining preferred shares and accrued dividends, totaling $116 million.
The company has also presented robust Q3 2024 financial results, with a notable year-over-year growth in revenue and adjusted EBITDA. The revenue for the quarter reached $227 million, a 20% increase compared to the same period last year, and adjusted EBITDA grew by 22% to $54.6 million. These positive results led to an upward revision of the full-year revenue guidance to between $875 million and $883 million.
Despite a recent increase in the stock's price, an analyst from Lake Street Capital Markets noted that Priority Technology's shares remain undervalued. The stock is priced at 6.8 times its projected 2025 EBITDA, compared to its peers in the payment processing industry, which trade at an average of 12.5 times EBITDA. According to the same analyst, the company's stock presents an attractive risk/reward proposition.
These recent developments suggest that Priority Technology is experiencing ongoing progress and potential for recurring revenue growth. However, it's important to note that the company's total debt remains substantial at $832.9 million, which continues to be a focus for financial analysts and investors.
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