B2B fintech Plastiq files for bankruptcy, enters deal with Priority
US-based B2B paytech Plastiq, which has filed for Chapter 11 bankruptcy protection, has entered into a stalking horse agreement to sell its assets to Priority Technology Holdings, which provides an integrated payments and banking platform, for an undisclosed sum.
Plastiq files for bankruptcy, enters deal with Priority
Founded in 2012 and based in San Francisco, Plastiq offers bill pay and working capital access to small and medium-sized businesses. The company voluntarily filed for bankruptcy on 24 May citing the failure of its payment processing partner Silicon Valley Bank, which had coerced Plastiq into stopping operations.
In 2022, Plastiq was to go public through a special purpose acquisition company (SPAC) merger that would have valued it at $480 million, a deal that did not materialise.
Thomas Priore, chairman and CEO of Priority, says the decision to enter into the agreement with Plastiq was “simple” – with Plastiq’s B2B product suite being a “natural complement” to Priority’s automated payables offering.
“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 agreement is subject to approval from the Bankruptcy Court, as well as any “higher and better” offers Plastiq may receive during the auction process.
