Deluxe Corporation
| Company type | Public |
|---|---|
| Industry | Payments and data services |
| Founded | January 1, 1915 in Saint Paul, Minnesota, United States |
| Founder | William Roy (W. R.) Hotchkiss |
| Headquarters | Minneapolis , United States |
Area served | United States, Canada, Australia, Europe |
Key people | CEO McCarthy |
| Products | B2B payments, data solutions, printing, merchant services |
Number of employees | 9,300 (as of 2004) |
| Website | www |
Deluxe Corporation is a contemporary enterprise specializing in payments and data services, organized into four main segments: B2B payments, data solutions, printing, and merchant services. It supports nearly 3 million small business clients alongside 4,000 financial institutions.
Originally headquartered in Shoreview, Minnesota, Deluxe declared in September 2020 its plan to move its main office to downtown Minneapolis by 2021. Among its subsidiaries are New England Business Services Inc. (NEBS), McBee (previously known as Royal McBee), and Checks Unlimited.
Deluxe maintains operational sites throughout the United States, Canada, Australia, and Europe, handling printing, fulfillment, call center operations, web hosting, and administrative tasks.
1915–1959
Founded in Saint Paul, Minnesota by William Roy (W. R.) Hotchkiss under the name Deluxe Check Printers, the company began with a modest $300 loan. Hotchkiss pioneered printing innovations that increased speed and developed the first personal flat-pocket checkbook and accompanying holder. Initially concentrating on check printing, Deluxe later broadened its scope to include business services.
1960–1989
Remaining privately owned until 1965, Deluxe incorporated magnetic ink character recognition (MICR) technology into its check printing processes. During the 1980s, as market demand waned and competition intensified, the firm incorporated in 1988 and adopted the name Deluxe Corporation. In the early 1990s, it diversified by entering the customer service industry for businesses.
1990–present
The mid-1990s digital payment surge considerably affected Deluxe’s foundational business, leading it to expand into transaction processing and software development. The company further diversified into business forms, supplies, promotional merchandise, and payroll solutions. From 1999 through 2004, Deluxe downsized its workforce from 15,400 to 9,300 employees and shuttered multiple manufacturing facilities. In 2004, it enhanced its small business portfolio by acquiring New England Business Service.
By 2008, Deluxe transitioned focus away from printing toward business services, initiating employee background screening through HireRight and acquiring companies including Hostopia (web hosting), Logo Mojo (logo creation), PartnerUp (market research), and MerchEngines (search engine marketing). Starting in 2010, Deluxe accelerated growth via over fifty acquisitions such as PsPrint (online printing), OrangeSoda (digital marketing), VerticalResponse (email campaigns), Wausau Financial Services (transaction processing), and LogoMix (branding). The company also introduced electronic checks.
Deluxe produced the reality television series Small Business Revolution, available on Hulu and Amazon Prime Video, featuring hosts like Baron Davis and Robert Herjavec. The show earned a Daytime Emmy Award nomination in 2021.
In April 2019, Deluxe distributed company stock to all employees and secured a partnership agreement with Synchrony Financial. The following year, CEO McCarthy assembled a new leadership team including a chief revenue officer and restructured corporate operations. Additionally, the firm announced plans for a FinTech and Customer Innovation Center in Sandy Springs, Georgia dedicated to payment technologies and cloud-based services.
In April 2021, Deluxe completed its largest acquisition by purchasing First American Payment Systems for $960 million to bolster its digital payments segment. First American offers merchant solutions for both physical and online transactions; this acquisition is projected to double Deluxe’s payments revenue from around $300 million.
Corporate acquisitions
| Year | Company | Industry | Details |
|---|---|---|---|
| 1994 | T/Maker | Software development | Acquired in 1994; recognized as an early personal computer software firm. Subsequently divested its software product lines to Broderbund. |
| 2004 | NEBS (New England Business Solutions/Services/Systems) | stationery | Renamed Deluxe in 2018. |
| 2008 | Aplus.net, Hostopia, VerticalResponse | Web hosting services | These acquisitions enhanced Deluxe’s digital service offerings. |
| 2014 | SiteKreator | Website creation | Incorporated into Hostopia to improve website building solutions. |
| 2016 | 180fusion | Digital marketing | Acquired to augment Deluxe’s digital marketing capabilities; financial terms not disclosed. |
| 2016 | Liquid Web (assets)/RDM Corporation | Web hosting | Purchased specific assets (excluding the company) to broaden web hosting services; Liquid Web later took over Rackspace's cloud sites division. |
| 2018 | MyCorporation/LogoMix/First Data | Business consulting services | Acquisition expanded Deluxe’s portfolio in business consultation and branding. |
| 2021 | First American Payment Systems | payment systems | Acquisition strengthened Deluxe’s capabilities in payment processing. |
| 2022 | TELUS Website and Marketing Services | Web hosting | Rebranded as EasyHosting by Deluxe, further extending web hosting and marketing service offerings. |
Corporate overview
Deluxe Corporation, publicly traded on the New York Stock Exchange, is based at 801 South Marquette Avenue in the heart of downtown Minneapolis. The company operates through four primary segments: data, B2B payments, print, and merchant services. Its clientele includes the Federal Reserve, approximately three million small businesses, and over 4,000 financial institutions. Annually, Deluxe facilitates payment transactions exceeding $2.8 trillion. Its comprehensive range of products and services caters to diverse markets within the financial and commercial sectors.
Competitive landscape
As reported by The New York Times in 2000, John H. Harland Company ranked as the second-largest check printer in the United States, with competitors such as Walmart also participating actively in check printing.