Deluxe Corporation Acquires Datamyx in a $160 Million All-Cash Deal
Deluxe Corporation, the company driving growth for small businesses and financial organizations, recently announced that it has acquired a one hundred percent stake in the privately-held company, Datamyx LLC, leading providers of integrated technology, analytics, and information solutions. Datamyx’s offerings boost customer revenues through lead optimization, strategic targeting, cross-selling and retention services.
Deluxe acquired Datamyx from a private equity fund based in New York, Halyard Capital, in an all-cash $160 million deal, with the purchase price being subject to customary post-closing adjustments.
This purchase price was funded by the existing credit facility’s expansion that currently offers a total financing capacity of an impressive $525 million. Following the acquisition, about $428 million is outstanding in the new expanded facility.
Lee Schram, CEO, Deluxe Corporation, said, “We believe the acquisition of Datamyx creates a tremendous strategic opportunity for us as we continue to grow our marketing solutions and other services product offerings. Datamyx’s expertise in transforming data into actionable marketing information provides valuable insight and helps customers grow their business. These added data analytics and modeling capabilities provide our Financial Services segment with another robust marketing offering for our customers.”
During the last quarter of 2015, it is expected that Datamyx will contribute about $7 million in revenue, and be approximately $0.06 dilutive to the projected earnings per share (EPS) – this includes around $0.02 per share towards transaction costs. The acquisition is expected to start generating operative cash flow from 2016 and be only slightly dilutive to the EPS, after considering acquisition-linked amortization costs.
Deluxe Corporation was represented by investment banking firm Cherry Tree & Associates LLC, while Petsky Prunier Securities represented Datamyx LLC and Halyard Capital.
