Deluxe Completes Acquisition of First American Payment Systems
June 01 2021 - 9:00AM
Business Wire
Doubles Deluxe Payments Segment revenue;
Accelerates One Deluxe transformation
Deluxe (NYSE: DLX) announced today it has completed the
previously announced acquisition of First American Payment Systems
(“First American”) for $960 million in cash. Deluxe announced the
proposed transaction on April 22, 2021.
With the addition of the First American omni-channel payments
platform, Deluxe immediately becomes a scaled and leading provider
in the strong secular growth merchant services market. The
acquisition doubles the revenue of the company’s fastest growing
segment, Deluxe Payments, to $600 million annually, with attractive
margins. Deluxe Payments accounts for 17 percent of the company’s
revenue currently. With First American, Payments will account for
29 percent.
“As the original payments company, this acquisition is a major,
strategic, logical and responsible next step in our transformation
into a Trusted Payments and Business Technology™ company,” said
Barry C. McCarthy, President and CEO of Deluxe.
By adding First American, Deluxe anticipates cross-selling into
new verticals, including government, not-for-profit and retail,
leveraging the company’s relationship with thousands of financial
institutions and millions of small businesses.
“With First American, we expand our ability to help our
customers pay, get paid, optimize and grow their businesses. Since
our announcement, our teams have come together to identify even
more exciting opportunities to bring value to customers,” said
Michael Reed, President of Deluxe Payments.
“Our entire team is looking forward to accelerating our growth
by leveraging the extensive Deluxe distribution channels and
reaching into their deep client base. Our businesses are
complementary, and our cultures and values align making our
combination natural,” said Neil Randel, CEO of First American and
Managing Director of Merchant Services for Deluxe.
About Deluxe Corporation
Deluxe, a Trusted Payments and Business Technology™ company,
helping businesses pay, get paid, optimize and grow. For more than
100 years, Deluxe has championed businesses so communities thrive
at all stages of their lifecycle, from start-up to maturity. Our
powerful solutions support millions of small businesses, thousands
of financial institutions and hundreds of the world’s most valuable
brands. The company operates at significant scale, processing more
than $2.8 trillion in annual payment volume. To learn how we can
help your business, visit us at www.deluxe.com, www.facebook.com/deluxecorp, www.linkedin.com/company/deluxe, or www.twitter.com/deluxe.
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version on businesswire.com: https://www.businesswire.com/news/home/20210601005699/en/
Cameron Potts VP, Corp. Communications 651-233-7735
Cameron.Potts@Deluxe.com
Tom Morabito VP, Investor Relations 470-607-5567
Tom.Morabito@Deluxe.com
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