Deluxe Announces Acquisition of Wausau Financial Systems

Shoreview, MN - October 23, 2014

Deluxe Corporation (NYSE: DLX) today announced the acquisition of Wausau Financial Systems (WAUSAU), a market share leader in receivables management for commercial banks and major corporations.

The acquisition closed on October 22 for $90 million; it was announced this morning during Deluxe’s Q3 financial results call with investors. By providing a broader and deeper range of financial technology solutions (FinTech) to both the retail and commercial sides of the market, the purchase of WAUSAU is an important step in the evolution of Deluxe’s Financial Services Segment to becoming a more diverse provider in the highly competitive FinTech marketplace.

“WAUSAU is a well‐respected and well‐managed business that complements our growing suite of FinTech solutions,” said John Filby, senior vice president, Deluxe Financial Services. “We now can offer solutions that address the highest priority needs for both the commercial and retail sides of the financial services market. Clients of both businesses will benefit from a more diverse and more substantial partner that can deliver against more of their FinTech needs."

Founded in 1971 and based in Mosinee, Wisconsin, WAUSAU has established partnerships with an impressive roster of clients, including nine of the top 10 financial institutions and more than 50 Fortune 500 companies. WAUSAU is a profitable and growing business with strong cash flows provided under long‐term contracts and a high percentage of recurring revenue fueled by a model that includes on‐premise software, software‐as‐a-service and business process outsourcing.

Today, Deluxe’s Financial Services segment is growing through development and delivery of a range of retailmarket FinTech solutions. These have included marketing services, risk and performance management, digital channels and loyalty. The acquisition of WAUSAU further enhances Deluxe’s competitive position as a FinTech provider, enabling an attractive range of growth opportunities on the commercial side of the FI market. Playing an increasingly strategic role in a market place where technology solution spending continues to grow, this acquisition is an important step in Deluxe’s evolution to becoming a more diverse provider of FinTech solutions.

“Deluxe is a forward‐thinking owner for WAUSAU that will enable us to accelerate our growth strategies for commercial FIs and major corporate clients,” explained Gary Cawthorne, president and chief executive officer of WAUSAU. “The current market for receivables management continues to grow and WAUSAU is leading the way toward the next generation with an integrated receivables management solution leveraging data and analytics across the spectrum of commercial payment types.”

River Branch Capital LLC is serving as financial advisor to Wausau Financial Systems and Katten Muchin Rosenman LLP is serving as legal advisor.

About Deluxe Corporation

Deluxe is a growth engine for small businesses and financial institutions. For our 5,700 financial institution customers, Deluxe offers industry‐leading programs in checks, customer acquisition, fraud prevention and profitability. We deliver a range of FinTech solutions that drive profitable growth for FIs through payments, marketing services, risk and performance management, digital channels and loyalty. Deluxe is also a leading provider of checks and accessories sold directly to consumers. More than 4.5 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, search engine optimization and logo design. For more information, visit us at www.deluxe.com, www.facebook.com/deluxecorp or www.twitter.com/deluxecorp..

About WAUSAU Financial Systems

WAUSAU is a catalyst for results. Partnering with industry‐leading financial institutions and corporations to reduce cost and strengthen their competitive market position, WAUSAU is recognized for consistently delivering best‐of‐breed financial technology, services and solutions that integrate receivables, accelerate deposits and payments, and eliminate paper. To meet clients’ needs, WAUSAU offers flexible delivery options– whether installed in‐house, outsourced, co‐sourced or in the cloud. Because of WAUSAU’s deep domain knowledge and experience, the company understands customers’ challenges and tailors its solutions and services to ensure they have a competitive edge. That’s why 20 of the 25 largest financial institutions and thousands of other leading organizations depend on WAUSAU. Because Results Matter. http://www.wausaufs.com/>.


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