Priority Technology Holdings Inc

2. Acquisition

Payslate

On January 21, 2025, PRTH’s indirect subsidiary, Priority Canada Acquisition Company, Inc. (the "acquiring entity"), acquired 100% of the equity interest in Payslate Inc. (Canada), and its subsidiary Rentmoola Payment Solutions Ltd (United Kingdom) (jointly referred as "Letus business"). The Letus business is engaged in processing of rent payments for property management companies in the United States and Canada and will complement the Company's Enterprise Payments business. The acquisition is aimed to provide an opportunity to expand Priority's services in Canada and compliment our existing rent payments business. The total purchase consideration was $11.0 million, consisting of $4.5 million in cash consideration funded by the Company’s cash flows and deferred consideration of $6.5 million. The Company has not yet completed its preliminary purchase price allocation and valuation of identified assets (including the acquired intangible assets such as customer relationships, trademarks, technology, etc.) and assumed liabilities. The tangible assets and liabilities assumed including acquired cash was not material. The preliminary purchase price allocation is expected to be completed during the period ended June 30, 2025.

Results for the Letus business is included within the Enterprise Payments segment, which includes $0.4 million in revenue and a net loss of $0.1 million for the three months ended March 31, 2025.