Deluxe Corporation

Deluxe Corporation is an American small business financial services company. Deluxe produces personal and business checks[5] as well as business services including marketing, web development, web hosting, and fraud protection.[6]

For the motion picture laboratory, see Deluxe Entertainment Services Group.
Deluxe Corporation
TypePublic
IndustryCorporate services
Founded1915 (1915), in Saint Paul, Minnesota
Headquarters
Shoreview, Minnesota
,
United States
Key people
  • Barry McCarthy (president and CEO)[1]
  • Scott Bomar (CFO)[2]
  • Cheryl Mayberry McKissack (chairwoman)[1]
Revenue US$ 1.8 billion (2020)
US$ 44.5 million (2020)
US$ 8.8 million (2020)
Total assets US$ 1.9 billion (2020)
Total equity US$ 540.8 million (2020)
Number of employees
6,500 (2020)[3]
Websitewww.deluxe.com
Footnotes / references
[4]

Deluxe and its subsidiary brands including New England Business Services Inc. (NEBS), McBee (formerly Royal McBee) and Checks Unlimited. Deluxe is based in the St. Paul suburb of Shoreview, Minnesota and has facilities in the U.S. and Canada to conduct its printing and fulfillment, call center, and administrative functions.[7]

History

Deluxe Corporation was founded as Deluxe Check Printers in 1915 by W.R. Hotchkiss in Saint Paul, Minnesota, after he secured a $300 loan.[5][8] Hotchkiss was the creator of some important, speed-enhancing inventions, which included the Hotchkiss Imprinting Press (patented in 1925), a two-way perforator, and the Hotchkiss Lithograph Press (patented in 1928). He also created the first personal flat-pocket checkbook and holder.[5] For most of its early history, Deluxe was primarily a check printing company. Business service operations were not added until later.[6]

In 1954, the Deluxe Corporation Foundation was created to contribute to charitable organizations.[9] The company was privately held until 1965, during which time it began using magnetic ink character recognition (MICR) check printing technology.[10] By the 1980s, the company was facing reduced demand for its products and increasing competition.[11] In 1988, the company incorporated and changed its name to Deluxe Corporation.[12] In the early 1990s it expanded into customer service for businesses.[6]

As use of digital payment systems gained popularity, Deluxe's core business was impacted significantly. In the mid-1990s, the company announced an expansion of its transaction processing and software businesses.[13] Deluxe began selling business forms and supplies, promotional products and branched out to offer other business services, such as payroll.[14] In 1999, Deluxe employed 15,400 people and operated 13 check-printing plants whereas by 2004, Deluxe employed 9,300, with eight plants.[14] Deluxe acquired small business services provider New England Business Service in 2004.[15] Deluxe shifted its focus from printing products to primarily business services in 2008.[16] It launched an employee background-screening service called HireRight and expanded its service offerings through acquisitions.[16] This included the purchase of Hostopia (web hosting), Logo Mojo (logo design), PartnerUp (market intelligence), and the 2009 acquisition of search engine marketer MerchEngines.[17][16]

From 2010 onward, Deluxe expanded its offerings to include web hosting, marketing services, promotional items, payroll management tools, and other services by acquiring more than 50 companies,[8] including online printing service PsPrint and web-based marketing firm OrangeSoda,[5] email marketing company VerticalResponse (2014),[18] transaction processing company Wausau Financial Services (2014),[19] and logo designer LogoMix (2018),[20] among others. It also began offering echecks.[21]

Company acquisitions
Year Company Business Notes
1994 T/Maker Computer software Acquired in 1994;[22] formerly an early personal computer software company. It later sold the software product lines of T/Maker to Broderbund.
2014 SiteKreator WebSite Building [23]
2016 180fusion Digital marketing Purchased for an undisclosed sum[24][25]
2016 Liquid Web (assets) Web hosting Purchased assets from LiquidWeb, which later acquired Rackspace's cloud sites web hosting unit.[24][26] Liquid Web itself was not acquired.
2018 MyCorporation Consultation [27]

Corporate overview

Deluxe Corporation is a public company traded on the New York Stock Exchange. It is headquartered in Shoreview, Minnesota,[28] and has announced plans to move to downtown Minneapolis in 2021.[29] Deluxe has four business divisions: cloud, payments, promotional products, and checks.[3][30] As of 2020, Deluxe's clients include the Federal Reserve,[3] 4.5 million small businesses and 4,000 financial institutions.[31] Through its systems for customers to send and receive payments, Deluxe processes more than $2.8 trillion in annual payments.[3][32]

References
  1. Kennedy, Patrick (October 6, 2019). "New Deluxe CEO focuses on solidifying shift away from legacy check business". Star Tribune. Retrieved 20 October 2021.
  2. Grossman, Matt (June 2, 2021). "Deluxe Hires Scott Bomar as CFO". Dow Jones Newswires. Retrieved June 23, 2021.
  3. Dreyfuss, Joel (March 28, 2020). "The century-old company that invented the checkbook may be a key coronavirus economic player". CNBC. Retrieved November 2, 2020.
  4. "US SEC: Form 10-K Deluxe Corporation". U.S. Securities and Exchange Commission. Retrieved June 23, 2021.
  5. Burns, Jim (3 September 2012). "Investor's Edge: As check printing business declines, Deluxe Corp. moves into services". The Post-Standard. Retrieved 3 November 2016.
  6. Goodrich, Laura (2011). Seeing Red Cars: Driving Yourself, Your Team, and Your Organization to A. ReadHowYouWant. ISBN 978-1-4596-2640-9. Retrieved 3 November 2016.
  7. Deluxe Corporation Company Snapshot URL last accessed November 21, 2009.
  8. Zaveri, Paayal (May 17, 2020). "A 105-year-old company that invented the checkbook explains how it transformed from a tangle of disparate businesses that 'no one really understood' into a sales powerhouse". Business Insider. Retrieved November 18, 2020.
  9. "Program receives grant". The Akron Beacon Journal. 25 December 2015. pp. A002. Retrieved 20 October 2021.
  10. Cullman, Lewis B. (2004). Can't Take It With You: The Art of Making and Giving Money. John Wiley & Sons. p. 107. ISBN 978-0-471-66678-3. Retrieved 3 November 2016. Deluxe Check Printers + 1915.
  11. John L. Mariotti (1997). The Shape Shifters. John Wiley and Sons. ISBN 0-595-48195-7.
  12. Businessweek.com URL last accessed November 22, 2009.
  13. Tracey, Brian (February 20, 1996). "Deluxe Corp. CEO Expects Check Use To Begin Waning as Early as Next Year". The American Banker. Retrieved November 23, 2020.
  14. "CEO to retire at Shoreview, Minn., check printer Deluxe Corp". Pioneer Press. December 14, 2004.
  15. "Deluxe completes $745 million takeover of NEBS". Boston Business Journal. June 25, 2004. Retrieved May 3, 2021.
  16. Depass, Dee (10 August 2008). "Down but not out, Deluxe on a comeback". Star Tribune. Archived from the original on 18 November 2018. Retrieved 5 November 2016.
  17. Tartakoff, Joesph (14 July 2009). "Check Printer Deluxe Purchases Search Engine Marketing Firm MerchEngines". Gigaom. Retrieved 13 November 2016.
  18. Campbell, Anita (26 July 2013). "VerticalResponse Email Marketing Company Acquired by Deluxe". Small Business Trends. Retrieved 21 November 2016.
  19. Ramstad, Evan (23 October 2014). "Deluxe net falls on charge, buys Wausau Financial". Star Tribune. Retrieved 21 November 2016.
  20. Ostuni, Amanda (May 10, 2018). "Deluxe Acquires LogoMix in $43M Deal". Twin Cities Business. Retrieved May 3, 2021.
  21. Arar, Denny (September 26, 2013). "New services tackle small business finance challenges". PC World. Retrieved June 23, 2021.
  22. "T/Maker Acquired". Macworld. Vol. 11 no. 9. September 1994. p. 33. Retrieved 12 August 2021.
  23. "SiteKreator now part of Hostopia". Sitekreator.com. 2014-03-05. Retrieved 2020-06-26.
  24. "Deluxe Corp 10-Q". EDGARpro. 5 August 2016. Retrieved 21 November 2016.
  25. "180Fusion Inc profile (showing Inc 5000 rank)". Inc.com. Retrieved 21 November 2016.
  26. Miller, Ron (8 August 2016). "Rackspace sells Cloud Sites unit to Liquid Web". TechCrunch. Retrieved 21 November 2016.
  27. Transcribers, Motley Fool (2019-01-24). "Deluxe Corp (DLX) Q4 2018 Earnings Conference Call Transcript -". The Motley Fool. Retrieved 2019-03-01.
  28. Kennedy, Patrick (October 6, 2020). "New Deluxe CEO focuses on solidifying shift away from legacy check business". Star Tribune. Retrieved November 2, 2020.
  29. Kennedy, Patrick (September 14, 2020). "Deluxe moving its headquarters from Shoreview to downtown Minneapolis". Star Tribune. Retrieved May 10, 2021.
  30. Dignan, Larry (June 27, 2021). "How Deluxe transformed from paper checks to providing an SMB cloud, payments stack". ZDNet. Retrieved August 24, 2021.
  31. Catts, Everett (September 9, 2020). "Deluxe Corp. center is bringing 709 jobs and $10.2M investment to Sandy Springs". MDJOnline.com. Retrieved May 25, 2021.
  32. Beltran, Luisa (April 22, 2021). "Deluxe to Scoop Up First American for $960 Million". Barron's. Retrieved June 23, 2021.
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