Deluxe Completes Acquisition of First American Payment Systems
Deluxe (NYSE: DLX) has successfully completed its acquisition of First American Payment Systems for $960 million in cash, a deal initially announced on April 22, 2021. This strategic move positions Deluxe as a leading player in the growing merchant services market, doubling the revenue of its Deluxe Payments segment to $600 million annually. Following the acquisition, Payments will represent 29% of Deluxe's total revenue, up from 17%. The company aims to leverage this acquisition to cross-sell services across various sectors, enhancing customer value and expanding its market reach.
- Acquisition of First American enhances Deluxe's market position in merchant services.
- Revenue for Deluxe Payments doubles to $600 million annually, increasing its proportion of total revenue from 17% to 29%.
- Strategic cross-selling opportunities into new verticals such as government and retail.
- None.
Deluxe (NYSE: DLX) announced today it has completed the previously announced acquisition of First American Payment Systems (“First American”) for
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
“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
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FAQ
What was the value of Deluxe's acquisition of First American Payment Systems?
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