Shoreview, Minnesota, based Deluxe Corporation, a company that used to be known for primarily selling checks, has continually evolved its products and services over the years in order to better serve its customer base.
The Company recently announced its intent to acquire First American Payment Systems, an electronic payment processor that handles in-store, online, and other payment services. Deluxe CEO, Barry McCarthy commented, "With electronic payments playing an increasingly important role across the economy, the addition of First American’s independent, leading payments platform will advance our One Deluxe strategy and our overall growth trajectory.”
According to the Minneapolis St. Paul Business Journal, this will be Deluxe Corp’s largest ever acquisition, paying $960 million in cash. The Company plans to finance the deal with a mix of secured and unsecured debt. Deluxe’s decision to enter into this market is not surprising as, according to MarketsandMarkets, the digital payment market is expected to nearly double in size by 2025, growing at a compound annual growth rate of 14.2%. This acquisition follows a strong Q1 trend in Fintech deals, such as Fiserv’s acquisition of Pineapple Payments.
Quazar Capital was not involved in this transaction.
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