On Oct. 22, 2014, Deluxe Corporation acquired Wausau Financial Systems in an all cash transaction for $90 million, net of cash acquired. The purchase included specific tax attributes, which are expected to generate approximately $4 million of incremental cash tax savings. The company, headquartered in Mosinee, Wis., provides software-based solutions for receivables management, lockbox processing, remote deposit capture and paperless in-branch solutions to a broad list of financial institutions, utilities, government agencies and telecommunications companies. The company will provide new access for Deluxe into the commercial and treasury side of financial institutions through a strong SaaS-based technology offering. The acquisition was financed through a draw on the company's existing credit facility and is expected to add approximately $12 million of revenue to fourth quarter 2014 results and be dilutive to EPS by approximately $0.01 per share over the same period. In 2015, Wausau Financial Systems is expected to generate approximately $80 million of revenue and be dilutive to EPS by approximately $0.04 per share on a full year basis, turning slightly accretive to earnings in the fourth quarter of 2015. This new acquisition will be reported in the Financial Services segment and its revenue will be included in Marketing Solutions and Other Services revenue.
- People:
- Lee Schram