Deluxe Corp. Buys Internet Marketing Firm for $28M
Deluxe Corporation said Tuesday that it has acquired OrangeSoda, Inc., an American Fork, Utah-based Internet marketing services provider, for $27.7 million in cash.
OrangeSoda specializes in search, mobile, and social media campaigns for small businesses. It provides services directly to small business clients and through partners in the media, telecommunications, and other industries. The company employs about 175 people, and it will maintain its existing Utah headquarters.
Shoreview-based Deluxe is a maker of checks for banks, but it has reinvented itself in recent years as a more diversified provider of solutions to small businesses, adding website development and hosting, search-engine marketing, logo design, and business networking to its offerings. The company currently serves roughly 4 million small-business customers.
Deluxe said that the purchase of OrangeSoda gives it more differentiated solutions and capabilities for serving small business customers. The company expects the deal to be “slightly dilutive” to earnings per share for the remainder of the year but to boost 2012 revenue by about $15 million.
“Deluxe will accelerate revenue growth in marketing solutions and other services by combining our organic capabilities with OrangeSoda’s innovative solutions, scalable provisioning platform and tools, and established market presence,” Malcolm McRoberts, senior vice president of small business services at Deluxe, said in a statement.
Deluxe is among Minnesota’s 30-largest public companies based on revenue, which totaled $1.4 billion in 2011.