Deluxe Corporation (DLX, NYSE) announced today that, through a wholly owned subsidiary, it has entered into a definitive agreement to acquire 100 percent of the stock of RDM Corporation (RC, TSX) of Canada for approximately $70 million US in cash, net of estimated cash to be acquired. The closing of the transaction is subject to customary conditions in Canada, including court approval, regulatory approval and the approval of RDM’s shareholders. The purchase price would be financed by using cash on hand and Deluxe’s existing credit facility. On closing, RDM will become part of the growing suite of Treasury Management Solutions offered by Deluxe.
RDM Corporation is a provider of remote deposit capture software and digital imaging solutions for financial institutions and corporate clients. Founded in 1987 in Waterloo, Ontario, RDM is publicly traded on the Toronto Stock Exchange and primarily does business in the United States.
RDM’s Board of Directors has unanimously approved of the acquisition and will recommend to RDM’s shareholders that they vote in favor of the acquisition. Pursuant to the agreement, directors, officers, and several other investors, collectively holding approximately 14 percent of RDM's common shares, have already agreed to support the transaction and each has entered into a support agreement to vote their common shares in favor of the transaction. Closing of the transaction is expected to occur by the end of March 2017.
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. Deluxe acquired WAUSAU Financial Systems in 2014, FISC in 2015 and Data Support Systems in 2016 building on a commitment to serve commercial financial institutions through treasury management solutions.
RDM customers include four of the top 10 banks in the US market and 31 percent of the top 100 Fortune 500 companies. RDM provides a robust suite of payments remittance processing and digital imaging software, scanner hardware and professional services.