April 4, 2017
Deluxe Corporation completes acquisition of RDM Corporation
WATERLOO--Deluxe Corporationhas completed its acquisition of all the issued and outstanding common shares of RDM for cash consideration of $131 million (CDN) by way of a plan of arrangement under section 192 of the Canada Business Corporations Act.
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."
This press release is also issued pursuant to National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, which requires a report to be filed on SEDAR (www.sedar.com) containing additional information with respect to the foregoing matters. The stock of RDM were acquired for CDN $5.45 per share in cash.
With the completion of the Arrangement, RDM's common shares are expected to cease trading and be de-listed from the Toronto Stock Exchange following the close of trading on or about April 5, 2017.
RDM Corporation provides large financial institutions with Remote Deposit Capture (RDC) solutions designed to help their clients simplify the way they do business. RDM processes over $600 billion in payments annually and helps financial institutions increase revenue, expand market share and improve customer service for over 80,000 end users.
Four of the top ten financial institutions in the United States use RDM's payment processing solutions. RDM serves 31 percent of the top 100 Fortune 500 companies including brokerage firms, big-box retailers, healthcare and insurance providers, and government entities. Working with clients for over 25 years, RDM provides both software and hardware solutions including web-based and mobile RDC, and manufactures a wide range of digital imaging scanners.
Deluxe Corp. is a growth engine for small businesses and financial institutions. Nearly 4.4 million small business customers access Deluxe's wide range of products and services, including customized checks and forms, as well as website development and hosting, email marketing, social media, search engine optimization and logo design. For its approximately 5,600 financial institution customers, Deluxe offers industry-leading programs in checks, data driven marketing, treasury management and digital engagement solutions. Deluxe is also a leading provider of checks and accessories sold directly to consumers.