RTTNews | Apr 22, 2021 06:52AM EDT

06:51 Thursday, April 22, 2021 (RTTNews.com) - Business technology company Deluxe (DLX) has agreed to acquire First American Payment Systems for $960 million in cash, the company said in a statement.

Deluxe believes that this deal will accelerate the company's transformation into a leading payments technology company as part of its "One Deluxe" strategy.

With this acquisition of the payment processing company, Deluxe expects to double the annual revenue of its Payments segment.

"Our acquisition of First American will enable Deluxe to participate in merchant services, a part of the strong secular growth payments industry," said Michael Reed, President of Payments for Deluxe. "With this combination, Deluxe and First American customers will have access to a broader array of valuable and robust technology services and solutions. We expect to offer these merchant services to our thousands of financial institution customers, millions of small businesses and hundreds of the world's biggest brands through our established and highly effective sales and distribution system."

Deluxe said it will finance the acquisition with a combination of secured and unsecured debt.

The deal is expected to close in the second quarter of 2021.

Additionally, Deluxe said its adjusted EBITDA is expected to be up 7% to 9% year over year in the first quarter of 2021. The company plans to release its quarterly results on May 6.

Read the original article on RTTNews ( https://www.rttnews.com/3187211/deluxe-to-buy-first-american-payment-systems-for-960-mln-cash.aspx)

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2021 RTTNews.com All Rights Reserved