Deluxe has closed its $960m deal to purchase payment processor First American Payment Systems.

The cash deal was announced in April this year.

The takeover increases the annual revenue of the Deluxe Payments segment by two-fold to $600m.

Payments will contribute 29% to the firm’s revenue with the acquisition, as compared to 17% at present.

As part of the deal, First American CEO Neil Randel became the managing director of Deluxe Merchant Services.

Randel said: “Our entire team is looking forward to accelerating our growth by leveraging the extensive Deluxe distribution channels and reaching into their deep client base.

“Our businesses are complementary, and our cultures and values align making our combination natural.”

Deluxe said that First American’s omni-channel payments platform makes its a scaled provider in the ‘secular growth merchant services market’.

It also speeds up Deluxe’s transformation into a payments technology firm in line with its One Deluxe strategy.

The deal will help Deluxe cross-sell into new verticals, including government, not-for-profit and retail.

It will be possible through the combination of First American’s distribution channels of independent software vendors, financial institutions (FIs), and independent sales organisations and Deluxe’s FI and small business customer base.

First American’s technology platform is said to help Deluxe support innovation in its other business segments, namely Cloud Solutions, Promotional Solutions and Checks.

Moreover, it is expected to unlock a broader range of future M&A opportunities for Deluxe.

Deluxe Payments president Michael Reed said: “With First American, we expand our ability to help our customers pay, get paid, optimise and grow their businesses. Since our announcement, our teams have come together to identify even more exciting opportunities to bring value to customers.”