Deluxe Corporation has agreed to wholly acquire RDM Corporation, a Canada-based remote deposit capture (RDC) solutions provider, for $70m.
RDM provides large financial institutions with remote deposit capture solutions that help their customers simplify the way they do businesses. It processes more than $600bn in payments annually.
As per the terms of transaction, holders of outstanding stock options of RDM which have an exercise price below the purchase price of $5.45 per common share will receive the ‘in-the-money’ value of such stock options.
The deal is subject to certain customary conditions, including approval by the Superior Court of Justice of Ontario (Commercial List), and applicable regulatory approvals.
RDM chairman of the board of directors Jean Noelting said: “Following an extensive review of strategic options for RDM with external advisors, which included a process for review of both buying and selling opportunities, the Board of Directors unanimously agreed that this transaction provides an attractive opportunity for the Company’s shareholders to realize full cash liquidity at a premium to the market price of the Company’s common shares and enterprise value.”