Deluxe Corporation (Shoreview, Minnesota), through a wholly owned subsidiary, has entered into an agreement to acquire 100% of the stock of RDM Corporation of Canada for approximately $70 million (U.S.) 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 does business primarily in the United States. Its Board of Directors unanimously approved the acquisition and will recommend to RDM’s shareholders that they vote in favour of it. Pursuant to the agreement, directors, officers and several other investors, collectively holding about 14%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 favour of the transaction. Closing of the transaction is expected by the end of March, 2017. RDM’s customers include 4 of the top 10 banks in the U.S. and 31% 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.
For over 100 years, Deluxe Corporation has been a leading provider of products and services to financial institutions and small businesses. It has about 5,600 financial institution customers that rely on it for programs and solutions in cheques, data-driven marketing, treasury management and digital engagement.