Minneapolis-based Deluxe Corp. announced it is selling its remaining logo design and web-hosting businesses as it focuses on its e-payment and data services offerings.
Minneapolis' Deluxe sells web-hosting business as it continues shift to payment services
Deluxe is selling some small-business services companies to concentrate on electronic payments and data services.
February 1, 2023 at 4:17PM
Deluxe had acquired a collection of small-business services companies over the years as it sought ways to diversify from its legacy check-printing business, which has been declining for decades.
"As Deluxe concentrates more on our core business of payments and data, we sought a scaled business leader that could continue to grow our web hosting and logo design businesses," Garry Capers, president of cloud solutions for Deluxe, said in a news release.
The businesses are being sold to HostPapa for $42 million. Privately held HostPapa is based in Burlington, Ontario, and provides web hosting and other services to small businesses.
"HostPapa is committed to further building on our expertise in providing exceptional solutions to small businesses and this transaction is a large step forward in our growth, Jamie Opalchuk, chief executive of HostPapa, said in the release.
About 250 people work in Deluxe's web-hosting and logo design businesses, the company said. They will all be transferred to HostPapa following the completion of the deal sometime in the first quarter.
Last March, Deluxe sold its web-hosting business in Australia, Hostopia, to Newfold Digital for $23 million. With the sale of its other web-hosting businesses to HostPapa, Deluxe has fully exited the web-hosting and logo design businesses.
Deluxe announced layoffs in September and has been reducing its real estate footprint over the past couple of years while concentrating on developing its payments and data services businesses.
In September 2020, Deluxe announced it was building a new fintech innovation center near Atlanta, and in April 2021, Deluxe announced a $960 million deal to acquire the e-payments company First American Payment Systems.
Deluxe is expected to report fourth-quarter and 2022 financial results on Thursday.
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