Plastiq Declares Bankruptcy; Priority Agrees To Acquire It

Plastiq, a US B2B payments firm for SMEs, filed for bankruptcy and engaged into a stalking horse arrangement to sell its assets to unified commerce platform Priority Technology.

Plastiq filed for Chapter 11 bankruptcy less than a year after a failed special purpose acquisition company (Spac) merger that would have taken it public at $480 million.

The failure of payments processing partner Silicon Valley Bank prompted the company to cease operations until it found a new partner.

Plastiq lets SMEs utilize credit cards for almost any expense, even where plastic isn’t accepted, maximizing working capital and saving cash.

Priority CEO Thomas Priore:

“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 acquisition agreement is subject to bankruptcy court rulings and better offers Plastiq may obtain during the auction.