Deluxe to buy Web company Hostopia.com for C$124 mln

June 19 (Reuters) - Deluxe Corp (DLX.N), the largest U.S. printer of checks, on Thursday said it agreed to buy Hostopia.com Inc H.TO for C$124 million (US$122 million) to provide more Internet-based services to small businesses.

The all-cash transaction values Hostopia at C$10.55 per share, more than double its Wednesday closing price of C$4.50.

Deluxe, based in St. Paul, Minnesota, said it expects the transaction to close in the third quarter, pending shareholder approval, and not significantly affect earnings this year.

Hostopia.com is based in Fort Lauderdale, Florida and has operation centers in Toronto, New Brunswick and the Ukraine, according to its Website. ($1 = C$1.014) (Reporting by Jonathan Stempel in Bangalore; Editing by Deepak Kannan) ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.reuters.com@reuters.net))