Deluxe Buys Datamyx For $160M
Deluxe Corporation said Monday it acquired Datamyx LLC, a privately held information, technology and analytics provider from Boca Raton, Florida, for $160 million in cash.
Datamyx calls itself a database marketing company that connects direct marketers in fields such as insurance, finance and automobiles with consumers through analytics, audience targeting, customer retention and cross-selling.
In a statement, Deluxe CEO Lee Schram described the deal as “a tremendous strategic opportunity.” He said the purchase would improve its capabilities to provide valuable data analytics, marketing solutions and a variety of other offerings to its customer base.
Deluxe serves about 4.6 million small businesses and 5,600 financial institutions in total with its range of products that include customized checks, business cards and door hangers. The Shoreview-based company also provides services such as website development, email marketing and logo design.
Datamyx is expected to contribute $7 million in revenue during the remainder of the fourth quarter of 2015. The deal should generate positive operating cash flow and dilute Deluxe’s earnings per share only slightly. More information regarding the long-term outlook of the acquisition will be provided during Deluxe’s third quarter report on October 22.
Approximately 5,400 workers are employed with Deluxe. To date, it is one of the two largest check printers in the U.S. with $1.52 billion in annual revenue. In September, the company celebrated its 100th anniversary by highlighting small businesses throughout the country. Some local examples, such as Tiny Diner in Minneapolis, made it into a 25-minute video Deluxe produced.