Deluxe Financial Services has acquired the remittance processing company First Data in a deal worth $93m.
This acquisition has been made to bolster the treasure management solutions of Deluxe. The deal was financed through a credit facility supplied by Deluxe.
As part of the transaction, First Data will continue to offer remittance processing services through a referral arrangement with Deluxe.
The purchase is part of Deluxe’s strategic commitment to support financial institutions with their treasury management. Following its other acquisitions of WAUSAU, FISC, Data Support Systems, and RDM, it has been able to provide working capital and remittance processing services to institutions.
The company also offers business processing outsourcing solutions to help receivables management, remote capture, payment processing, and treasury management onboarding.
First Data is a global payments processor which supports small businesses, multi-nationals, and financial institutions with their transactions. Through the platform, a business can accept all types of transactions including chip and pin and contactless.
A variety of payment terminals are on offer including card machines, mini payment terminals, a mobile solution, and a payment station which also offers inventory tracking and other services – E-commerce payment services are also available.
First Data Chairman and CEO Frank Bisignano said, “This transaction is a win for both First Data and Deluxe. It is consistent with First Data’s commitment to optimize our portfolio, allowing us to focus on businesses that are core to our growth strategy.
“As a result of this acquisition, Deluxe will bring together deep industry experience and core offerings in lockbox services and software as a leader in treasury management.”
Earlier in month, First Data agreed to sell 64 million of its Class A common stock and an additional 9.6 million shares are available to underwriters.
Copyright © 2018 FinTech Global
