Priority Technology Holdings, Inc. has announced the successful acquisition of certain assets of Dealer Merchant Services (DMS). The acquisition consideration was partially financed with a $35 million increase to the company’s broadly syndicated term loan, bringing it to $1.035 billion.
The acquisition includes the revenue agreements and customer relationships of DMS, a leading reseller in the auto and truck dealership sector. Amberly Allen and Laura Sherman, the leadership team of DMS, will join Priority.
The acquisition is expected to provide approximately $3 million of incremental revenue and just over $1 million of incremental adjusted EBITDA in Q4 2025. Additionally, the recently closed Boom Commerce acquisition is expected to have an adjusted EBITDA impact of $6 million in 2025, with $2.5 million of the originally expected $5 million revenue impact being recorded as a reduction in Priority’s cost of sales.
Wellesley Hill Financial, LLC served as the financial advisor and Zahara Alarakhia, PLLC served as the legal advisor to Dealer Merchant Services, while Maynard Nexsen PC served as the legal advisor to Priority.
This acquisition is seen as a strategic move for Priority, as it allows them to expand their compliant surcharge program with payables and treasury management solutions, ultimately helping dealers increase profitability. The company's CEO, Tom Priore, believes that the combination of their payments and banking technology with DMS’s vertically focused integrated software and distribution in the automotive dealership arena will deliver exceptional value to the dealership community and tremendous growth to their investors. The market has reacted to these announcements by moving the company's shares 0.15% to a price of $6.88. For more information, read the company's full 8-K submission here.
