Cherry Tree advises Deluxe on the Acquisition of MyCorporation

Cherry Tree advises Deluxe on the Acquisition of MyCorporation

Cherry Tree advises Deluxe on the Acquisition of MyCorporation

Transaction Description

Deluxe Corporation (NYSE: DLX) acquired MyCorporation, a provider of incorporation, compliance and other services to new businesses. Deluxe CEO Barry McCarty commented on the acquisition: “Capturing clients at business formation, we believe, will enable us to cross-sell existing products and services, such as logo design, web design, web hosting, e-mail marketing, payroll services and more.”
 

About Deluxe

Deluxe Corp.is a leader in trusted tech-enabled solutions. Nearly 4.4 million small business customers access Deluxe’s wide range of products and services, including customized checks and forms, as well as incorporation services, logo design, website development and hosting, email marketing, social media, search engine optimization and payroll services. For our approximately 4,600 financial institution customers, Deluxe offers industry-leading programs in checks, data analytics and customer acquisition and treasury management solutions, including fraud prevention and profitability. Deluxe is also a leading provider of checks and accessories sold directly to consumers.  For more information, visit  www.deluxe.com.
 

About MyCorporation

Based in Calabasas, CA, MyCorporation provides online document filing services for small business clients. The company offers business services in the areas of incorporation, LLC formation, trademark and copyright services, as well as compliance services and business maintenance services. For more information, visit www.mycorporation.com.
 

About Cherry Tree & Associates

Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis, Minnesota. Founded in 1980, it specializes in M&A transactions for both buyers and sellers of middle market companies. Additionally, it conducts private placements for attractive, entrepreneurially-managed growth companies, provides strategic advisory services to CEOs and boards of directors, and prepares fairness opinions and other valuation services. For more information, visit www.cherrytree.com.

Cherry Tree & Associates (located in Minneapolis, MN) provides investment banking services through our FINRA-licensed broker dealer.

Cherry Tree Advises docuLynx on its Sale to DRS Imaging Services

Cherry Tree Advises docuLynx on its Sale to DRS Imaging Services

Cherry Tree Advises docuLynx on its Sale to DRS Imaging Services

HiGro Group portfolio company, DRS Holdings, LLC, Acquires the Assets of docuLynx

 

The HiGro Group LLC (“HiGro”), through its portfolio company DRS Imaging Services, LLC, has acquired a majority of the assets of docuLynx Inc., a leading provider of Document Management Software and Services. Financial terms of the transaction were not disclosed.

Founded in 2004, docuLynx provides Document Management Software and Solutions (“DMSS”) to a large number of clients across the corporate, education, healthcare and government verticals. docuLynx’ solutions span the entire lifecycle of documents to include services such as image capture and digital conversion, workflow management, document storage, and information governance. The Company manages a tenured client roster of over 200 customers nationwide and a base of over 75 employees.

“DRS is thrilled to begin our partnership with docuLynx as the team delivers its breadth of experience and technology solutions to the world’s most sophisticated and loyal clients. I am excited about the possibilities within the next phase of our company and am also proud to retain a talented group of employees eager to work together to create the nation’s largest independent Document Management Services and Software provider,” said Clifford Newman, Chief Executive Officer of DRS.

“We are ecstatic about supporting the mission that DRS leadership has set. We believe that the docuLynx opportunity along with the company’s organic performance is a strong example of what can happen when HiGro partners with great leaders and teams,” stated Ernest Lyles, HiGro Principal and Co-Founder.

Sidley Austin served as legal advisor to HiGro. OFS Capital Corporation OFS, +0.09% and Modern Bank led the debt financing for the transaction.

About docuLynx

Based in Omaha, Nebraska, docuLynx was founded in 2004 and is a provider of document software and technology services to primarily to the Healthcare, Education, Finance and Government verticals. docuLynx has five locations and approximately 75 employees. For more information, please visit: www.docuLynx.com

About DRS Holdings, LLC

Based in Springfield, New Jersey, DRS was founded in 1964 and is a provider of document conversion and technology services to primarily to the Healthcare, Education, Finance and Government verticals. DRS has seven locations and 185 employees. For more information, please visit: www.drsimaging.com

About The HiGro Group

Based in New York, The HiGro Group is a private equity investment firm focused on impact investing in the business and technology services sector. The HiGro Group is minority owned and controlled. The HiGro Group enlists its investor base of ultra high net worth individuals and family offices to structure and invests in traditional buy-outs of well-established companies with potential for high growth. For more information, please visit: www.higrogroup.com.

Source: https://www.marketwatch.com

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Cherry Tree & Associates (located in Minneapolis, MN) provides investment banking services through our FINRA-licensed broker dealer.

Cherry Tree Advises Deluxe’s WAUSAU Financial Systems on the Acquisition of First Data’s Remittance Processing Business

Cherry Tree Advises Deluxe’s WAUSAU Financial Systems on the Acquisition of First Data’s Remittance Processing Business

Cherry Tree Advises Deluxe's WAUSAU Financial Systems on the Acquisition of First Data's Remittance Processing Business

Deluxe Corporation (NYSE: DLX) announced today that its WAUSAU Financial Systems, Inc. subsidiary has acquired the remittance processing business of First Data Corporation (NYSE: FDC). The business is now an integral part of Deluxe Financial Services’ growing suite of Treasury Management Solutions.

“This is another strategically important acquisition for Deluxe Financial Services as we cement our position as a leading provider of receivables management solutions”

The remittance processing business acquired by Deluxe provides a robust suite of services across payment types, as well as image capture software. The solutions are designed to improve operational efficiency, reduce costs, and improve funds availability for financial institutions and corporate clients.

“This is another strategically important acquisition for Deluxe Financial Services as we cement our position as a leading provider of receivables management solutions,” said John Filby, President of Deluxe Financial Services. “This acquisition reinforces our longstanding ‘best-in-class’ brand promise and the ongoing market trend toward outsourcing technology enabled solutions and services to trusted FinTech partners of scale. We remain committed to delivering industry leading receivables management solutions for the most demanding financial institutions and corporate clients in the world.”

The all-cash acquisition was completed for approximately $93 million and was financed through the Deluxe credit facility. This acquisition was first mentioned in Deluxe’s April 26 earnings release, again in a June 18 acquisition update press release and in Deluxe’s July 25 earnings release. Deluxe expects the acquisition to deliver revenue of approximately $10 million in the third quarter and $19 million in the fourth quarter, or $29 million in 2018. The third quarter and full year revenue outlook ranges will be lower than previously communicated by $7 million as a result of the timing of the acquisition closure. The acquisition is expected to be slightly dilutive to Deluxe’s earnings per share for the year.

This acquisition, as well as the acquisitions of WAUSAU, FISC, Data Support Systems, and RDM Corporation that were made over the last four years, is evidence of Deluxe’s strategic commitment to serve commercial financial institutions. Deluxe Treasury Management Solutions allow financial institutions and corporations to accelerate working capital, improve straight-through remittance processing, and drive profitable growth with in-house, hosted or Business Process Outsourcing (BPO) solutions for receivables management, remote capture, payment processing services, and treasury management onboarding.

“This transaction is a win for both First Data and Deluxe,” said Frank Bisignano, Chairman and CEO of First Data. “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.”

As part of the agreement, First Data will continue to offer remittance processing services through a referral arrangement with Deluxe.

About Deluxe
Deluxe Corp. is a growth engine for small businesses and financial institutions. Nearly 4.4 million small business customers access Deluxe’s wide range of products and services, including customized checks and forms, as well as website development and hosting, email marketing, social media, search engine optimization and logo design. For our approximately 4,900 financial institution customers, Deluxe offers industry-leading programs in checks, data driven marketing, treasury management and digital engagement solutions. Deluxe is also a leading provider of checks and accessories sold directly to consumers. For more information, visit us at www.deluxe.comwww.facebook.com/deluxecorp or www.twitter.com/deluxecorp.

Source: https://www.businesswire.com

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Cherry Tree & Associates (located in Minneapolis, MN) provides investment banking services through our FINRA-licensed broker dealer.

Cherry Tree Advises Flipgrid in its Sale to Microsoft

Cherry Tree Advises Flipgrid in its Sale to Microsoft

Cherry Tree Advises Flipgrid in its Sale to Microsoft

Microsoft snaps up Minneapolis tech startup Flipgrid

Source: Katharine Grayson  – Senior Reporter, Minneapolis / St. Paul Business Journal

MINNEAPOLIS – Flipgrid, a startup spun out of the University of Minnesota that makes a video-sharing app for classrooms, has been sold to Microsoft Corp. for an undisclosed amount.

Microsoft will retain Flipgrid’s operations in Minneapolis. It also will begin offering the startup’s product for free, the Redmond, Wash.-based software giant said in a news release.

University of Minnesota Learning Technologies Professor Charles Miller invented Flipgrid to engage students in his classroom. The product lets people create short videos around certain topics and easily share them.

The tool became the foundation for a startup, then called Vidku, that launched about three years ago. The company raised $17 million in 17 days and tech veteran Jim Leslie signed on to lead it as CEO, while serial entrepreneur Phil Soran signed on as executive chairman.

The company initially planned to launch a product for businesses, but scrapped that strategy two years ago and changed its name to Flipgrid. It continued to focus on the education market. Today about 20 million students in 180 countries use the application, Microsoft said.

Microsoft (Nasdaq: MSFT) didn’t disclose the Flipgrid’s employee count, but said the business has less than 30 workers.

“We’re thrilled to see the impact Flipgrid has had in social learning thus far and look forward to helping them continue to thrive as part of the Microsoft family,” said Eran Megiddo, corporate vice president for Microsoft, in the news release. “We’re diligently committed to making sure their platform and products continue to work across the Microsoft, Google and partner ecosystems to benefit students and teachers everywhere.”

In a statement, Leslie said the deal will allow Flipgrid to grow.

“Flipgrid has always been about the educator community. They are the source of our innovation and impact. Now as a part of Microsoft, we have the opportunity to scale so we can support every educator across the globe as they empower student voice.”

About 80 investors participated in Flipgrid’s $17 million round of funding, most of them individuals, Leslie said at the time. Arthur Ventures, which has offices in Minneapolis and Fargo, N.D., was the “anchor financier.” The University of Minnesota also retained a stake in the startup.

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For more information contact:Chad Johnson, 952.253.6010 | cjohnson@cherrytree.com

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Cherry Tree & Associates (located in Minneapolis, MN) provides investment banking services through our FINRA-licensed broker dealer.

Cherry Tree Advises Flipgrid in its Sale to Microsoft

Adam Smith Advisors, LLC changes company name to Cherry Tree Wealth Management, LLC

Adam Smith Advisors, LLC changes company name to Cherry Tree Wealth Management, LLC

Adam Smith Advisors, LLC has changed its company name to Cherry Tree Wealth Management, LLC. Adam Smith Advisors, LLC has been the wealth management business within Cherry Tree Companies and has used both the Adam Smith Advisors and Cherry Tree brand names for some time. The goal of the name change is to better leverage the strong Cherry Tree brand name, and to reflect that we are part of the Cherry Tree family of companies.

Our business, ownership and strong team of advisors will remain the same, only our brand name is being changed. Cherry Tree Wealth Management, LLC is an independent, fee-based registered investment advisory (RIA) business. We are committed to providing a full range of wealth management services to help our clients meet all their financial and life goals. “We are excited to change our wealth management company brand name to Cherry Tree Wealth Management, LLC. The Cherry Tree brand name is well-known and has a positive image in the Twin Cities and Upper Midwest, due to its history of more than 30 years in business helping businesses and families in the Midwest”, says Keith Tufte, President of Cherry Tree Wealth Management, LLC.

Cherry Tree & Associates (located in Minneapolis, MN) provides investment banking services through our FINRA-licensed broker dealer.

Cherry Tree Advises Deluxe Corporation on Acquisition of RDM Corporation

Cherry Tree Advises Deluxe Corporation on Acquisition of RDM Corporation

Cherry Tree Advises Deluxe Corporation on Acquisition of RDM Corporation

Deluxe Corporation Completes Acquisition of RDM Corporation of Canada

Deluxe Corporation (NYSE: DLX) and RDM Corporation (TSX: RC) of Canada announced that, through a wholly owned subsidiary, Deluxe has completed the acquisition of 100 percent of the stock of RDM for approximately $70 million (USD) in cash, net of cash acquired. RDM will become part of the growing suite of treasury management solutions offered by Deluxe.

The addition of RDM is expected to contribute approximately $19 million to 2017 revenue and be accretive to operating income for 2017, and add roughly $0.02 to earnings per share before transaction costs and restructuring. These effects were already included in Deluxe’s previously provided 2017 earnings guidance as indicated in the Form 10-K.

RDM Corporation is a provider of remote deposit capture (RDC) software, hardware and digital imaging solutions for financial institutions and corporate clients. Founded in 1987 in Waterloo, Ontario, RDM was publicly traded on the Toronto Stock Exchange and conducts business primarily in the United States. RDM customers include four of the top 10 banks in the US market and 31 percent of the top 100 Fortune 500 companies.

“RDM further enhances our robust suite of best-in-class treasury management solutions, strengthening our value proposition and improving our market position,” said John Filby, President of Deluxe Financial Services. “Deluxe acquired WAUSAU Financial Systems in 2014, FISC in 2015 and Data Support Systems in 2016. We continue to build on our commitment to bring a rich set of treasury management solutions together under one roof.”

For more than 100 years, Deluxe Corporation has been a leading provider of products and services to financial institutions and small businesses. Deluxe has approximately 5,600 financial institution customers that rely on it for industry-leading programs in checks, data-driven marketing, treasury management and digital engagement solutions.

“Together with Deluxe we are now the provider of choice for commercial and business mobile RDC which are attractive growth markets for us and our clients,” said Randy Fowlie, President and CEO of RDM Corporation. “We are pleased to be joining an established FinTech leader who shares our vision and reputation for client delivery excellence.”

This press release is also issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, which requires a report to be filed on SEDAR (www.sedar.com) containing additional information with respect to the foregoing matters. The stock of RDM were acquired for CDN$5.45 per share in cash.

About Deluxe
Deluxe Corp. is a growth engine for small businesses and financial institutions. Nearly 4.4 million small business customers access Deluxe’s wide range of products and services, including customized checks and forms, as well as website development and hosting, email marketing, social media, search engine optimization and logo design. For our approximately 5,600 financial institution customers, Deluxe offers industry-leading programs in checks, data driven marketing, treasury management and digital engagement solutions. Deluxe is also a leading provider of checks and accessories sold directly to consumers. For more information, visit us at deluxe.comwww.facebook.com/deluxecorp or www.twitter.com/deluxecorp.

About RDM
RDM Corporation provides large financial institutions with Remote Deposit Capture (RDC) solutions designed to help their clients simplify the way they do business. Working with clients for over 25 years, RDM provides both software and hardware solutions including web-based and mobile RDC, and manufactures a multiple range of digital imaging scanners. Four of the top ten financial institutions in the United States use RDM’s payment processing solutions. RDM serves 31 percent of the top 100 Fortune 500 companies including brokerage firms, big-box retailers, healthcare and insurance providers, and government entities. RDM processes over $600 billion in payments annually and helps financial institutions increase revenue, expand market share and improve customer service for over 80,000 end users.Visit www.rdmcorp.com to learn more.

Forward-Looking Statements
Certain statements contained in this communication, including statements about the acquisition of RDM, its effects, and the Company’s outlook, constitute “forward-looking statements.”

Forward-looking statements can usually be identified by the use of words such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “evolve,” “expect,” “forecast,” “intend,” “looking ahead,” “may,” “opinion,” “plan,” “possible,” “potential,” “project,” “should,” “will” and other expressions which indicate future results, events or trends. Such statements reflect management’s current expectations or beliefs, and are subject to risks and uncertainties that could cause actual results or events to vary from stated expectations, which variations could be material and adverse. Factors that could produce such a variation include, but are not limited to, the following: the acquisition may involve unexpected costs or liabilities; Deluxe may be unable to achieve expected synergies and operating efficiencies from the acquisition within the expected time frames or at all; the integration of RDM into Deluxe’s business may be unsuccessful, or more difficult, time consuming or costly than expected; revenues following the acquisition may be lower than expected; operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) may be greater than expected following the acquisition; uncertainties surrounding the acquisition; the impact that a deterioration or prolonged softness in the economy may have on demand for the Company’s products and services; the inherent unreliability of earnings, revenue and cash flow predictions due to numerous factors, many of which are beyond the Company’s control; declining demand for the Company’s check and check-related products and services due to increasing use of other payment methods; intense competition in the check printing business continued consolidation of financial institutions and/or additional bank failures, thereby reducing the number of potential customers and referral sources and increasing downward pressure on the Company’s revenue and gross profit; risks that the Small Business Services segment strategies to increase its pace of new customer acquisition and average annual sales to existing customers, while at the same time maintaining its operating margins, are delayed or unsuccessful; risks that the Company’s recent acquisitions do not produce the anticipated results or revenue synergies; risks that the Company’s cost reduction initiatives will be delayed or unsuccessful; performance shortfalls by one or more of the Company’s major suppliers, licensors or service providers; unanticipated delays, costs and expenses in the development and marketing of products and services, including web services and financial technology solutions; the failure of such products and services to deliver the expected revenues and other financial targets; risks of unfavorable outcomes and the costs to defend litigation and other disputes; and the impact of governmental laws and regulations.

Our forward-looking statements speak only as of the time made, and we assume no obligation to publicly update any such statements. Additional information concerning these and other factors that could cause actual results and events to differ materially from the Company’s current expectations are contained in the Company’s Form 10-K for the year ended December 31, 2016.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170404005869/en/

Source: Deluxe Corporation

Cherry Tree and Associates advised Deluxe as part of this transaction

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Cherry Tree & Associates (located in Minneapolis, MN) provides investment banking services through our FINRA-licensed broker dealer.