On its path to diversify past examine printing, Deluxe has agreed to buy Texas-based service provider providers agency First American Cost Techniques for $960 million.

The deal for First American, one of many largest remaining privately owned fee processors with 160,000 retailers in North America and Europe, will broaden Shoreview, Minn.-based Deluxe’s attain and place the corporate for future acquisitions, Deluxe mentioned in a Thursday press launch.

The transfer suggests Deluxe — which has longstanding relationships with banks — nonetheless sees sturdy progress alternatives in conventional service provider providers.

First American sells in-store, on-line and cell fee acceptance options by means of unbiased software program distributors, banks and ISOs, whereas Deluxe, a century-old agency, sells promotional, cloud-based expertise and examine options. The mixture will allow each corporations to cross-sell an entire funds product set to all sizes of companies and banks, the press launch mentioned.

“It is a main, logical and accountable subsequent step in our transformation,” mentioned Barry McCarthy, who turned Deluxe’s chief in 2018 after an extended stint at First Information (now Fiserv).

“It is a main, logical and accountable subsequent step in our transformation,” mentioned Barry McCarthy, CEO of Deluxe.

“Our acquisition of First American will allow Deluxe to take part in service provider providers, part of the sturdy secular progress funds trade,” mentioned Michael Reed, Deluxe’s president of funds.

The deal, which is anticipated to shut through the second quarter, requires First American CEO Neil Randel to develop into managing director of service provider providers at Deluxe.



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