SHOREVIEW, Minn. - Deluxe Corporation (NYSE: DLX) and RDM Corporation (TSX: RC) of Canada announced today that, through a wholly owned subsidiary, Deluxe has completed the acquisition of 100 percent of the stock of RDM for approximately $70 million (USD) in cash, net of cash acquired. RDM will become part of the growing suite of treasury management solutions offered by Deluxe.
The addition of RDM is expected to contribute approximately $19 million to 2017 revenue and be accretive to operating income for 2017, and add roughly $0.02 to earnings per share before transaction costs and restructuring. These effects were already included in Deluxe’s previously provided 2017 earnings guidance as indicated in the Form 10-K.
RDM Corporation is a provider of remote deposit capture (RDC) software, hardware and digital imaging solutions for financial institutions and corporate clients. Founded in 1987 in Waterloo, Ontario, RDM was publicly traded on the Toronto Stock Exchange and conducts business primarily in the United States. RDM customers include four of the top 10 banks in the US market and 31 percent of the top 100 Fortune 500 companies.
“RDM further enhances our robust suite of best-in-class treasury management solutions, strengthening our value proposition and improving our market position,” said John Filby, President of Deluxe Financial Services. “Deluxe acquired WAUSAU Financial Systems in 2014, FISC in 2015 and Data Support Systems in 2016. We continue to build on our commitment to bring a rich set of treasury management solutions together under one roof.”
For more than 100 years, Deluxe Corporation has been a leading provider of products and services to financial institutions and small businesses. Deluxe has approximately 5,600 financial institution customers that rely on it for industry-leading programs in checks, data-driven marketing, treasury management and digital engagement solutions.
“Together with Deluxe we are now the provider of choice for commercial and business mobile RDC which are attractive growth markets for us and our clients,” said Randy Fowlie, President and CEO of RDM Corporation. “We are pleased to be joining an established FinTech leader who shares our vision and reputation for client delivery excellence.”