Deluxe Corporation Announces Major Acquisition of Celero Commerce

Deluxe Corporation (NYSE: DLX), a prominent name in the payments and data solutions industry, has taken a significant step in its transformation strategy by announcing a definitive agreement to acquire Celero Commerce, a financial technology firm specializing in payment solutions for small to mid-sized businesses. The acquisition, valued at approximately $625 million plus associated seller transaction expenses, is poised to reshape Deluxe's revenue mix and bolster its competitive position in the evolving payments landscape.

The acquisition of Celero is a strategic initiative aimed at enhancing Deluxe's focus on high-growth Payments and Data segments. Upon closing, the combined revenue from these sectors is projected to constitute 57% of Deluxe's total revenues for 2026, a stark increase from just 31% in 2020. This move underscores Deluxe's commitment to shifting its business model towards areas with greater growth potential.

Barry McCarthy, President and CEO of Deluxe, emphasized the strategic fit between the two companies, stating, “Adding Celero immediately accelerates our transformation and shifts our revenue mix decisively towards our growing Payments and Data segments.” He highlighted Celero’s loyal customer base, strong financial performance, and corporate culture as key reasons for the acquisition.

Celero Commerce, headquartered in Nashville, is recognized as a leading integrated payment processing partner. The company offers innovative, all-in-one omnichannel payment solutions combined with localized customer support, catering specifically to small and mid-sized businesses. The acquisition not only broadens Deluxe's distribution capabilities but also enhances its service offerings, creating a more comprehensive solution for clients in various sectors.

Kevin Jones, Founder and CEO of Celero, expressed enthusiasm for the merger, stating that the combination of Deluxe’s scale and resources with Celero’s technological expertise and customer-centric culture would create a stronger platform for growth.

The merger is expected to yield several strategic and financial advantages:

The integration of Celero's established partner network with Deluxe's extensive financial institution partnerships and sales capabilities is anticipated to significantly broaden the customer base.

Combining Deluxe’s customer service model with Celero’s experienced sales team will optimize sales efforts and expand market penetration. Celero’s addition of approximately 60 new partners in 2025 further complements this strategy.

With a combined gross transaction volume of approximately $70 billion in 2025, the merger positions Deluxe among the top 10 non-bank merchant acquirers in the U.S. This scale is expected to improve processing efficiencies and increase long-term operating margins.

The acquisition is projected to be accretive to adjusted earnings per share (EPS) in its first year and is expected to generate over $15 million in cost synergies within 24 months post-closing. Celero's financial health—evidenced by over $200 million in revenue and a 28% adjusted EBITDA margin in 2025—further enhances the attractiveness of the deal.

Deluxe anticipates a net leverage ratio of approximately 3.9x at closing, with a commitment to reducing this to below 3.0x within two years, reflecting a disciplined approach to debt management.

The acquisition of Celero is an all-cash transaction, subject to regulatory approvals and customary closing conditions. Deluxe plans to fund the acquisition through a combination of committed debt financing, including a $375 million Term Loan A from a five-bank syndicate led by BofA Securities, Inc., alongside its existing revolving credit facility. The deal is expected to close in the third quarter of 2026.

Deluxe maintains its previously issued full-year guidance for 2026, which does not account for the Celero acquisition’s impact. Updated guidance will be provided post-closing.

Investors and stakeholders are encouraged to tune into a conference call hosted by Deluxe at 8:30 a.m. ET on the day of the announcement for further insights into the transaction.

The acquisition of Celero Commerce marks a pivotal moment for Deluxe Corporation as it accelerates its transformation towards a more robust Payments and Data business model. This strategic move not only enhances Deluxe's capabilities but also positions the company for sustained growth in a competitive landscape, ultimately aiming to better serve small and mid-sized businesses across the nation.