Deluxe To Buy RDM Corp. For $70M
Deluxe Corporation announced Monday its intention to buy RDM Corp. of Canada, a financial technologies company, for $70 million.
Closing of the deal is subject to customary closing conditions in Canada, which entail court and regulatory approval, as well as approval from the RDM’s shareholders.
Deluxe’s $5.45-a-share deal for RDM represents a 14 percent premium over the closing price for RDM stock on February 10.
RDM’s board of directors already approved the company’s sale unanimously. Shareholders will vote next and, if passed, will move the purchase agreement along to an expected close of late March 2017.
Although RDM is based in Waterloo, Ontario, the company primarily does business in the United States. Among those that utilize RDM’s remote deposit capture software and digital imaging solutions are JP Morgan and 31 percent of the top 100 Fortune 500 companies.
Shoreview-based Deluxe said it would use a mix of its existing credit facility and cash to pay for RDM. Upon approval of the deal, RDM will be integrated with Deluxe’s treasury management solutions business.
The intended purchase of RDM marks Deluxe’s fourth acquisition in less than four years. In 2014, the company purchased Wausau Financial Systems, followed by FISC Solutions in 2015 and Data Support Systems in 2016.
Deluxe currently serves 5,600 financial institution customers through its check printing and design and marketing services. The company’s fiscal 2016 revenue totaled $1.85 billion.