Plastiq files for bankruptcy; agrees acquisition deal with Priority

Plastiq, a US B2B payments firm for SMEs, has filed for bankruptcy and entered into a stalking horse agreement to have its assets acquired by unified commerce platform Priority Technology.

Plastiq has filed for Chapter 11 bankruptcy protection less than a year after an aborted special purpose acquisition company (Spac) merger that would have taken it public at a $480 million enterprise valuation. The company was affected by the collapse of payments processing partner Silicon Valley Bank, which forced it to halt operations while it scrambled to find a new partner. Plastiq enables SMEs to use their credit cards for virtually any expense, even where plastic isn’t accepted, helping users to maximize the working capital they already have while also conserving cash. Thomas Priore, CEO, Priority, says: “Our decision to enter into this agreement was simple. Strategically speaking, Plastiq’s buyer-driven B2B product suite is a natural complement to our CPX Automated Payables offering, and the company has an extremely talented team with a mindset that will fit naturally into the collaborative and execution-oriented culture at Priority. "Since we are already partners for payment processing, we are well positioned to help support the restructuring and Plastiq’s customers as the company emerges stronger from the process.” The purchase agreement is subject to certain orders being entered by the bankruptcy court and to higher and better offers Plastiq may receive during the auction process.

By on Thu, 25 May 2023 13:14:00 GMT
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