Market Overview

Deluxe Corporation's WAUSAU Financial Systems, Inc. Acquires First Data's Remittance Processing Business


Deluxe Corporation (NYSE:DLX) announced today that its WAUSAU Financial
Systems, Inc. subsidiary has acquired the remittance processing business
of First Data Corporation (NYSE:FDC). The business is now an integral
part of Deluxe Financial Services' growing suite of Treasury Management

The remittance processing business acquired by Deluxe provides a robust
suite of services across payment types, as well as image capture
software. The solutions are designed to improve operational efficiency,
reduce costs, and improve funds availability for financial institutions
and corporate clients.

"This is another strategically important acquisition for Deluxe
Financial Services as we cement our position as a leading provider of
receivables management solutions," said John Filby, President of Deluxe
Financial Services. "This acquisition reinforces our longstanding
‘best-in-class' brand promise and the ongoing market trend toward
outsourcing technology enabled solutions and services to trusted FinTech
partners of scale. We remain committed to delivering industry leading
receivables management solutions for the most demanding financial
institutions and corporate clients in the world."

The all-cash acquisition was completed for approximately $93 million and
was financed through the Deluxe credit facility. This acquisition was
first mentioned in Deluxe's April 26 earnings release, again in a June
18 acquisition update press release and in Deluxe's July 25 earnings
release. Deluxe expects the acquisition to deliver revenue of
approximately $10 million in the third quarter and $19 million in the
fourth quarter, or $29 million in 2018. The third quarter and full year
revenue outlook ranges will be lower than previously communicated by $7
million as a result of the timing of the acquisition closure. The
acquisition is expected to be slightly dilutive to Deluxe's earnings per
share for the year.

This acquisition, as well as the acquisitions of WAUSAU, FISC, Data
Support Systems, and RDM Corporation that were made over the last four
years, is evidence of Deluxe's strategic commitment to serve commercial
financial institutions. Deluxe Treasury Management Solutions allow
financial institutions and corporations to accelerate working capital,
improve straight-through remittance processing, and drive profitable
growth with in-house, hosted or Business Process Outsourcing (BPO)
solutions for receivables management, remote capture, payment processing
services, and treasury management onboarding.

"This transaction is a win for both First Data and Deluxe," said Frank
Bisignano, Chairman and CEO of First Data. "It is consistent with First
Data's commitment to optimize our portfolio, allowing us to focus on
businesses that are core to our growth strategy. As a result of this
acquisition, Deluxe will bring together deep industry experience and
core offerings in lockbox services and software as a leader in treasury

As part of the agreement, First Data will continue to offer remittance
processing services through a referral arrangement with Deluxe.

About Deluxe
Deluxe Corp. is a growth engine for small
businesses and financial institutions. Nearly 4.4 million small business
customers access Deluxe's wide range of products and services, including
customized checks and forms, as well as website development and hosting,
email marketing, social media, search engine optimization and logo
design. For our approximately 4,900 financial institution customers,
Deluxe offers industry-leading programs in checks, data driven
marketing, treasury management and digital engagement solutions. Deluxe
is also a leading provider of checks and accessories sold directly to
consumers. For more information, visit us at,

Forward-Looking Statements
Certain statements contained in
this communication, including statements about the acquisition of First
Data's remittance processing business, its effects, and the Company's
expectations and outlook, constitute "forward-looking statements."

Forward-looking statements can usually be identified by the use of words
such as "aim," "anticipate," "believe," "continue," "could," "estimate,"
"evolve," "expect," "forecast," "intend," "looking ahead," "may,"
"opinion," "plan," "possible," "potential," "project," "should," "will"
and other expressions which indicate future results, events or trends.
Such statements reflect management's current expectations or beliefs and
are subject to risks and uncertainties that could cause actual results
or events to vary from stated expectations, which variations could be
material and adverse. Factors that could produce such a variation
include, but are not limited to, the following: the remittance
processing business acquisition may involve unexpected costs or
liabilities; Deluxe may be unable to achieve expected synergies and
operating efficiencies from the acquisition within the expected time
frames or at all; the integration of the acquired business into Deluxe's
business may be unsuccessful, or more difficult, time consuming or
costly than expected; revenues following the acquisition may be lower
than expected; operating costs, customer loss and business disruption
(including, without limitation, difficulties in maintaining
relationships with employees, customers, clients or suppliers) may be
greater than expected following the acquisition; uncertainties
surrounding the acquisition; the impact that a deterioration or
prolonged softness in the economy may have on demand for the Company's
products and services; the inherent unreliability of earnings, revenue
and cash flow predictions due to numerous factors, many of which are
beyond the Company's control; declining demand for the Company's check
and check-related products and services due to increasing use of other
payment methods; intense competition in the check printing business and
continued consolidation of financial institutions and/or additional bank
failures, thereby reducing the number of potential customers and
referral sources and increasing downward pressure on the Company's
revenue and gross profit; risks that the Small Business Services segment
strategies to increase its pace of new customer acquisition and average
annual sales to existing customers, while at the same time maintaining
its operating margins, are delayed or unsuccessful; risks that the
Company's other recent acquisitions do not produce the anticipated
results or revenue synergies; risks that the Company's cost reduction
initiatives will be delayed or unsuccessful; performance shortfalls by
one or more of the Company's major suppliers, licensors or service
providers; unanticipated delays, costs and expenses in the development
and marketing of products and services, including web services and
financial technology solutions; the failure of such products and
services to deliver the expected revenues and other financial targets;
risks related to security breaches, computer malware or other
cyber-attacks; risks of interruptions to the Company's website
operations or information technology systems; risks of unfavorable
outcomes and the costs to defend litigation and other disputes; and the
impact of governmental laws and regulations.

Our forward-looking statements speak only as of the time made, and we
assume no obligation to publicly update any such statements. Additional
information concerning these and other factors that could cause actual
results and events to differ materially from the Company's current
expectations are contained in the Company's Form 10-K for the year ended
December 31, 2017.

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