DLX - Deluxe to acquire First American Payment Systems for $960M

Deluxe (DLX) inks an agreement to acquire First American Payment Systems for $960.0M in cash.The acquisition doubles Payments segment revenue while sustaining healthy margins.The acquisition to be financed with a combination of secured and unsecured debt. Following completion, the company’s expected net debt to adjusted EBITDA ratio is expected to be ~4.0x, with a long-term target leverage ratio of ~3.0x, or below.Post-closing, the First American management team will join the Deluxe Payments team, and Randel will become Managing Director, Merchant Services.The transaction is subject to necessary approvals, and expected to close in Q2'21.Q1 prelims: Adjusted EBITDA is expected to be up 7% to 9% Y/Y; Adjusted EBITDA margin is anticipated to increase 300 to 350 bps Y/Y.

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Deluxe to acquire First American Payment Systems for $960M