Add-on Acquisition • Software

Deluxe Acquires Wausau Financial Systems

On October 23, 2014, Deluxe acquired software company Wausau Financial Systems from American Capital and Frontenac for 90M USD

Acquisition Context
  • This is Deluxe’s 2nd transaction in the Software sector.
  • This is Deluxe’s 8th largest (disclosed) transaction.
  • This is Deluxe’s 13th transaction in the United States.
  • This is Deluxe’s 1st transaction in Wisconsin.

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M&A Deal Summary

Date October 23, 2014
Target Wausau Financial Systems
Sector Software
Buyer(s) Deluxe
Sellers(s) American Capital
Frontenac
Deal Type Add-on Acquisition
Deal Value 90M USD
Advisor(s) River Branch (Financial)

Target Company

Wausau Financial Systems

Mosinee, Wisconsin, United States
Wausau Financial Systems, Inc. is a provider of fully-bundled software and hardware technology solutions for remittance and check processing.
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Buyer Overview 1

Buyer

Deluxe

Minneapolis, Minnesota, United States

Category Company
Founded 1915
Sector Business Services
Employees4,981
Revenue 2.1B USD (2024)
DESCRIPTION
Entrance to Deluxe's corporate headquarters in Shoreview, Minnesota.
Entrance to Deluxe's corporate headquarters in Shoreview, Minnesota.

Deluxe provides a diversified range of products and services to businesses of all sizes. The Company's products and services include customized checks and forms, as well as website development and hosting, email marketing, social media, search engine optimization, and logo design. Deluxe was founded in 1915 and is based in Minneapolis, Minnesota.


Deal Context for Buyer #
Overall 14 of 22
Sector: Software 2 of 3
Type: Add-on Acquisition 14 of 20
State: Wisconsin 1 of 1
Country: United States 13 of 19
Year: 2014 2 of 2
Size (of disclosed) 8 of 11
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-01-07 Destination Rewards

Boca Raton, Florida, United States

Destination Rewards, Inc. has developed a patented, innovative rewards and loyalty solution that is based upon an expansive merchant network for discounted retail goods and services including hotel rooms, local deals, gift cards and top brand name merchandise.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-10-19 Datamyx

Boca Raton, Florida, United States

Datamyx LLC is a provider of integrated information, technology and analytics solutions derived from all three national credit bureaus.

Buy $160M

Seller Profiles 2

SELLER

American Capital


Category Private Equity Firm
Founded 1997
PE ASSETS 22.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

American Capital was a publicly traded buyout and mezzanine investment firm. American Capital invested in buyouts, growth capital financings, acquistion financings, and recapitalizations. The Firm looked to finance businesses with at least $4 million in EBITDA and valued between $20 and $500 million. American Capital ws a generalist firm with broad interest in traditional industries such as manufacturing, distribution, and services. American Capital's European investment affiliate is European Capital. European Capital looked to invest $10 to $600 million of equity, mezzanine, and/or senior debt in similar opportunities across Europe. American Capital was formed in 1997 and in January 2017, merged with Ares Capital Management.


Deal Context for Seller #
Overall 162 of 194
Sector: Software 5 of 9
Type: Add-on Acquisition 79 of 87
State: Wisconsin 6 of 7
Country: United States 157 of 186
Year: 2014 12 of 13
Size (of disclosed) 44 of 56
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-10-13 TransFirst

Hauppauge, New York, United States

TransFirst LLC is a provider of secure transaction processing services and payment enabling technologies.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-11-03 Qualitor

Southfield, Michigan, United States

Qualitor is a supplier of branded aftermarket safety and wear products for the automotive aftermarket. Qualitor provides wiper blades and auto care accessories, as well as brake hardware and related components. Qualitor was founded in 1999 and is based in Southfield, Michigan.

Sell -
SELLER

Frontenac

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1971
PE ASSETS 2.1B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Frontenac is a Midwest US-based private equity firm that seek profitable, lower middle-market company investments with $5 to $25 million of EBITDA. Frontenac typically partners with management when pursuing acquisitions, including companies managed by owner-operators. Sectors of interest include financial services, healthcare services, education/HR services, manufacturing, publishing/media, and technology services. Frontenac was formed in 1971 and is based in Chicago, Illinois.


Deal Context for Seller #
Overall 39 of 60
Sector: Software 3 of 3
Type: Add-on Acquisition 12 of 22
State: Wisconsin 1 of 1
Country: United States 37 of 58
Year: 2014 2 of 2
Size (of disclosed) 12 of 16
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-07-23 Cloud Star

St. Louis, Missouri, United States

Cloud Star is a producer of natural and wholesome products for dogs, even those with allergies.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-01-01 A.H. Harris Construction Supplies

Hartford, Connecticut, United States

A.H. Harris Construction supplies a high-quality construction products and equipment for contractors, construction companies and government entities in the concrete construction, repair and restoration, road and bridge, rebar and rebar fabrication, waterproofing and glazing markets. It represents 500+ manufacturers and over 13,000 products. A.H. Harris has over 600 experienced team members, a multitude of delivery options and over 50 convenient locations in 12 states.

Buy -