Deluxe Corp. said Thursday it bought a Wisconsin-based maker of accounting software, Wausau Financial Systems, for $90 million in cash, a deal that came on the heels of stronger-than-expected quarterly results.
Executives raised their outlook for the rest of the year. Deluxe shares rose a half-percent.
The Shoreview-based provider of marketing, payroll and other services for small and midsize businesses said its adjusted earnings per share amounted to $1.03, above the $1 that analysts had forecast. Revenue grew nearly 4 percent to $413.2 million.
The company's largest business, small business services, was also its fastest-growing with a 7.2 percent increase in revenue. Its operating income slipped 6.7 percent.
Its direct checks business saw revenue grow 6.9 percent and a small jump in income. Financial services revenue fell about 1 percent.
With Wausau Financial, Deluxe will add software products that help businesses manage receivables, lockbox processing and remote deposits. Deluxe said it expects the purchase to add $12 million in revenue and reduce its earnings by 1 cent per share in the fourth quarter. The company said it was paying for the deal from its existing credit line.
The company said it now expects full-year adjusted earnings per share to range from $4.08 to $4.14, the upper portion of its previous range of $4.04 to $4.14. It also raised its revenue guidance to a range of $1.657 billion to $1.665 billion, up from $1.635 billion to $1.665 billion.
Evan Ramstad
