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Payment Processor Priority Holdings Closes Combination with M I Acquisitions to Become a Publicly-Traded Company.

MANews-(C)2009-2018

30 July 2018 - US-based B2C and B2B payment processing solutions provider Priority Holdings, LLC and special purpose acquisition company M I Acquisitions, Inc. (NASDAQ: MACQU) have closed an agreement, whereby Priority combined with M I and will be renamed Priority Technology Holdings, Inc., the companies said.

The combined company will apply to continue the listing of its common stock on the NASDAQ Stock Market under the ticker symbol "PRTH."

Post transaction, Priority's management team will continue to lead the company and Priority's current equityholders will own over 90% of the combined entity.

Founded in 2005, Priority is a provider of consumer and commercial payment solutions, processing over USD 39bn of electronic payments in 2017.

Since 2015, Priority has grown net revenue and Adjusted EBITDA at compound annual growth rates of 13% and 16%, respectively.

Currently, Priority is the 7th largest non-bank merchant acquirer in the United States.

M I will combine with Priority at an enterprise value in excess of USD 1bn, based on forecasted 2018 pro forma Adjusted EBITDA, with an equity value of approximately USD 690m.

Existing Priority equityholders will roll 100% of their equity into the combined company, resulting in expected pro forma ownership of over 90%.

M I is a blank check company formed for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities sponsored by NY-based investment firm, Magna.

In September 2016, M I consummated a USD 54.7m initial public offering of 5.73m units, each unit consisting of one share of common stock and one redeemable common stock purchase warrant, at a price of USD 10.00 per unit.

With headquarters in Alpharetta, Georgia, Priority is a payments company. The company was founded in 2005, with a mission to build a merchant inspired payments platform that would advance the goals of its SMB and enterprise business partners.

Processing over USD 39bn of payment volume in 2017, Priority is currently the 7thlargest non-bank merchant acquirer in the United States.

Cowen and Company acted as exclusive strategic and financial advisor to Priority Holdings, LLC; Chardan acted as exclusive advisor to M I; Schulte Roth and Zabel LLP acted as legal counsel to Priority; Loeb and Loeb LLP acted as legal counsel to M I.

Country: USA

Sector: Banking/Financial Services

Target: Priority Holdings, LLC

Buyer: M I Acquisitions, Inc

Vendor:

Deal size in USD: 1bn

Type: Merger

Financing:

Status: Closed

Buyer advisor: Chardan , Loeb and Loeb ,

Comment: The combined company will apply to continue the listing of its common stock on the NASDAQ Stock Market under the ticker symbol "PRTH."

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Publication:M & A Navigator
Date:Jul 30, 2018
Words:446
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