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April 23, 2021

Deluxe to buy First American Payment Systems in $960m deal

By Shalini mani

Deluxe has signed a deal to acquire First American Payment Systems, a privately owned payment processor, for $960m in cash.

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2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

Through the deal, Deluxe expects to expedite its transformation into a payments technology firm in line with its One Deluxe strategy.

First American offers in-store, online, and mobile payment solutions to partners and merchants. These include digital payment processing services that help customers navigate through traditional, mobile, and virtual point-of-sale channels.

Furthermore, the company anticipates that the deal will help double the annual revenue of its payments segment.

Delux president and CEO Barry McCarthy called the deal ‘a major, logical and responsible next step’ in the company’s transformation.

McCarthy noted: “With electronic payments playing an increasingly important role across the economy, the addition of First American’s independent, leading payments platform will advance our One Deluxe strategy and our overall growth trajectory.”

Further deal rationale

First American’s omni-channel payment technology and proprietary back-end processing and settlement platform is said to assist Deluxe’s transformation into a payment major.

Additionally, the deal will combine 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.

The combination is said to generate cross-sell opportunities in new verticals. This includes government, not-for-profit and retail.

Deluxe further noted that First American’s technology platform will help it innovate across its Cloud Solutions, Promotional Solutions and Checks business segments.

It is also said to open up a wider range of future M&A opportunities for the company.

Commenting on the deal, First American CEO Neil Randel said: “In joining forces with a Fortune 1000 publicly traded company, we are advancing our mission to create innovative solutions as we continue to help our customers succeed and prosper.”

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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