Deluxe to Sell Australia Operations to Newfold Digital for $23M
The transaction between Newfold Digital — a web and commerce technology company backed by Clearlake Capital Group, L.P., and Siris Capital Group, LLC — and Deluxe is expected to close in the second quarter of 2022.
Deluxe is only selling its Australian operations. The Minneapolis-based company has concentrated on cross-selling platforms, solutions, and services to 4 million small business customers and more than 4,000 enterprise and financial customers, said Garry Capers, president of Cloud Solutions for Deluxe, in a news release announcing the agreement.
“To better manage our portfolio of businesses, and to emphasize our cross-sell abilities, it makes sense at this time to sell our Australia hosting operations to further refine our offerings in the North American market,” Capers said in a statement.
Over the past few years, Deluxe has been working to transform the company with a focus on cross-selling products and services, said spokesman Cameron Potts. This means Deluxe is able to provide North American clients everything from merchant services such as credit card processing to HR and payroll solutions.
“We work closely with our customers to help them better serve their clients through our products and services,” Potts said.
Newfold Digital was established in 2021 through the combination of web services providers Endurance Web Presence and Web.com Group. The company’s portfolio of brands includes Bluehost, CrazyDomains, HostGator, Network Solutions, Register.com, Web.com, and many others. The web and commerce technology company helps customers of all sizes build a digital presence and serves nearly 7 million customers globally.
“As a global company, we are always looking to grow our footprint and bring our industry-leading brands and customer support to small businesses around the world,” Ed Jay, president of Newfold Digital, said in a statement. “A trusted web hosting service provider is essential for today’s online businesses, and Deluxe’s Australia web hosting business is an established platform. We are excited to welcome their customers and employees as we build upon our previous acquisitions of CrazyDomains and FreeParking to further enhance our position in the region.”
Originally based in Shoreview, Deluxe Corp. relocated its headquarters to downtown Minneapolis in 2021.
Deluxe’s revenue totaled $1.8 billion in 2020, $217.9 million lower than the previous year. The company employs 6,185 people, with around 1,500 employed in Minnesota.