Profile: Deluxe Corp (DLX.N)
11 Mar 2014
Deluxe Corporation, incorporated in 1920, through its various businesses and brands provide a suite of life-cycle driven solutions to its customers. The Company uses printed and electronic marketing, a direct sales force, financial institution and telecommunication client referrals, purchased search results from online search engines, and independent distributors and dealers to provide its customers a range of customized products and services. The Company operates in three segments: Small Business Services, Financial Services and Direct Checks. Its Small Business Services segment has provided products and services to over 4 million small business customers and its Direct Checks segment has provided products and services to more than 8 million consumers. Through its Financial Services segment, it provides products and services to approximately 6,000 financial institution clients. Its product and service offerings are consisted of checks, forms, accessories and other products, marketing solutions and other services. In January 2014, the Company announced that it has completed the acquisition of Destination Rewards, a customer rewards and loyalty program provider based in Boca Raton, Florida.
The Company’s is a provider of checks in the United States, both in terms of revenue and the number of checks produced. All three of the Company’s segments offer products and services that help small businesses and financial institutions promote their businesses and acquire customers. All three of its segments provide fraud protection services. In addition, its Small Business Services segment offers payroll services, and Financial Services provides financial institution profitability, regulatory and compliance programs. During the year ended December 31, 2011, Checks represented 47.2% of Small Business Services total revenue.
Small Business Services
Small Business Services operates under various brands, including Deluxe, NEBS, Safeguard, McBee, PsPrint, StephenFossler, Hostopia, Logo Mojo, Aplus.net and MerchEngines.com. Small Business Services is a supplier to small businesses by providing personalized products and services. This segment sells products and services to small businesses in the United States, Canada, and portions of Europe and South America. The Company’s Small Business Services products are distributed through more than one channel. Its primary channels are direct response advertising through mail and the Internet, referrals from financial institutions and telecommunications clients, Safeguard distributors, a network of independent local dealers, and a direct sales force. Customer service for initial order support, product reorders and routine service is provided by a network of call center representatives located throughout the United States and Canada. The Company’s small business customer referrals receives through its Deluxe Business Advantage program, which provides a way for financial institutions to offer expanded personalized service to small businesses. Its relationships with financial institutions are important in helping its customer segments, such as contractors, retailers and professional services firms.
The Company’s Small Business Services segment is a provider of printed forms to small businesses, including, billing forms, work orders, job proposals, purchase orders, invoices and personnel forms. Small Business Services produces products which are designed to provide small business owners with the customized documents necessary to manage their business, including envelopes, office supplies, stamps and labels, as well as retail packaging supplies. Its Small Business Services segment offers services, such as Web design, hosting and other Web services, logo design, search engine marketing, and digital printing services designed to fulfill the sales and marketing needs of small businesses, as well as products, such as business cards, greeting cards, brochures and apparel.
Financial Services’ products and services are sold through multiple channels, including a direct sales force, to financial institution clients nationwide, including banks, credit unions and financial services companies. Consumers and small businesses submit their check order to their financial institution, which then forwards the order to the Company. It processes the order and ships it directly to the consumer or small business. Financial Services produces a range of check designs, with many consumers preferring one of the dozens of licensed or cause-related designs it offer, including Disney, Warner Brothers, Garfield, Harley-Davidson, NASCAR, PGA TOUR, Thomas Kinkade, Susan G. Komen for the Cure and National Arbor Day Foundation. It is also advancing the marketing solutions and other services offerings. Its Financial Services segments offer checkbook covers and stamps. Financial Services offers various customer acquisition programs and marketing communications services
The Company delivers several marketing solutions and other services offerings, including Marketing solutions, Banker’s Dashboard, Deluxe Provent, Deluxe Calling, REALChecking program, Regulatory compliance and SwitchAgent. Marketing solutions is a range of strategic and tactical marketing solutions, which helps financial institutions acquire new customers, deepen existing customer relationships and retain customers. Banker’s Dashboard is an online financial management tools that provides financial institutions with a daily view of their financial picture. Deluxe Provent is a range of identity protection services. Deluxe Calling is an outbound calling program. REALChecking program is a system of deposit products, including reward checking programs, which drives non-interest income, attracts new account holders and increases retention for community financial institutions. It offers this range of products to the clients through a partnership with BancVue, Ltd. Regulatory compliance is a services that assist financial institutions in complying with the dynamic regulatory environment. SwitchAgent provides service allowing consumers to switch from one financial institution to another.
In addition to the Company’s various marketing solutions and other services offerings, it continues to offer its Knowledge Exchange Series for financial institution clients, through which it hosts knowledge exchange expos, conduct Web seminars, host special industry conference calls and offer specialized publications. During 2011, the Company closed its Financial Services customer call center located in Phoenix, Arizona.
Direct Checks is a direct-to-consumer check supplier, selling under various brand names, including Checks Unlimited, Designer Checks, Checks.com, Check Gallery, The Styles Check Company, and Artistic Checks, among others. Through these brands, the Company sells its products and services directly to consumers using direct response marketing and the Internet. Its Direct Checks segments offer checkbook covers and stamps. Direct Checks provides package insert programs under which companies’ marketing materials are included in its check packages.
3680 Victoria Street North
SHOREVIEW MN 55126