Deluxe to Acquire

    Acquisition Provides Web-Hosting Capabilities for Small Businesses

    ST. PAUL, Minn. and MISSISSAUGA, Ontario, June 19 /CNW/ -- Deluxe
Corporation (NYSE:   DLX) and Inc. (TSX: H) today announced that
they have entered into a definitive agreement for Deluxe to acquire Hostopia,
a leading provider of web services that enable small and medium-sized
businesses to establish and maintain an Internet presence.  Deluxe will
acquire Hostopia in an all-cash transaction that values Hostopia at
approximately C$124 million.  Under terms of the Merger Agreement, Deluxe will
pay C$10.55 in cash for each outstanding Hostopia common share.  Subject to a
final accounting allocation of the purchase price, the acquisition is not
expected to have a significant impact to Deluxe's earnings and operating cash
flow for fiscal 2008.
    "We are very excited with the prospect of providing Hostopia's
industry-leading, private-label web services to our small business customers
and collectively growing our product and service offerings as we move forward
together," said Lee Schram, Chief Executive Officer of Deluxe.  "Hostopia has
grown top line revenue in excess of 20 percent in each of the last three
years.  While we have substantial knowledge and expertise in selling to the
small business market, we believe that Hostopia's ability to attract new
customers and provide additional services to that market will increase the
power of our offerings. This acquisition is in line with our long-term
strategy of broadening the products and services we offer to small businesses
to manage, promote and grow their businesses.  We also believe that the
transaction will offer significant value to our shareholders as we continue to
introduce growing products and services with recurring revenue streams."
    Colin Campbell, Chief Executive Officer of Hostopia, said, "After careful
consideration, the Hostopia Board of Directors has unanimously approved this
transaction with Deluxe.  We believe the transaction delivers outstanding
value to the Hostopia stockholders.  Deluxe and Hostopia have many
similarities, including a desire to help small businesses grow and promote
their businesses.  Our customers will benefit from augmented product and
service offerings which include small business logo design, print-on-demand
services and e-mail marketing, all of which have demonstrated demand from
small businesses.  In addition, Deluxe brings access to new channels for
Hostopia including direct mail to small businesses and sales through financial
institutions.  We look forward to providing web-hosting capabilities to small
businesses as a significant component of the services that Deluxe offers to
those businesses."
    The transaction, which has been unanimously approved by the Boards of
Directors of both companies, is structured as a merger under applicable law.
It will require the approval of Hostopia stockholders holding a majority of
the outstanding Hostopia common shares at a special meeting to be called to
consider the transaction.  Hostopia stockholders holding in aggregate
approximately 35% of the issued and outstanding shares of Hostopia common
stock have agreed to vote their Hostopia common shares in favor of the
transaction as long as the merger agreement is in effect, pursuant to a voting
agreement with Deluxe.  The transaction is also subject to certain other
customary closing conditions.  The transaction is expected to close in the
third quarter of 2008.
    About Deluxe Corporation
    Deluxe Corporation, through its industry-leading businesses and brands,
helps financial institutions and small businesses better manage, promote, and
grow their businesses. Deluxe uses direct marketing, distributors, and a North
American sales force to provide a wide range of customized products and
services: personalized printed items (checks, forms, business cards,
stationery, greeting cards, labels, and retail packaging supplies),
promotional products and merchandising materials, fraud prevention services,
and customer retention programs. Deluxe also sells personalized checks and
accessories directly to consumers. For more information about Deluxe
Corporation, visit
    About Inc. Inc. is a leading provider of web services that enable small
and medium-sized businesses to establish and maintain an Internet presence.
Hostopia's customers are communication services providers, including
telecommunication carriers, cable companies, internet service providers,
domain registrars, and web hosting service providers.  Hostopia's customers
purchase its web services on a wholesale basis and resell these services under
their own brands to small and medium-sized businesses.  Hostopia provides
customers with the technology, infrastructure, and support services to enable
them to offer web services, while saving them research and development as well
as capital and operating costs typically associated with the design,
development, and delivery of web services.
    Forward-Looking Statements
    Certain statements contained in this release may be deemed to be
forward-looking statements under certain securities laws, including the "safe
harbor" provisions of the United States Private Securities Litigation Reform
Act of 1995 and in any applicable Canadian securities legislation, and Deluxe
Corporation and Inc. intend that such forward-looking statements
be subject to the safe-harbor created thereby.  These forward-looking
statements include, but are not limited to, statements with respect to the
acquisition of Hostopia by Deluxe and statements concerning Deluxe's and
Hostopia's, or their management's, current intentions, expectations, beliefs,
projections or predictions about future results or events.  Forward-looking
statements are typically identified by words such as "believe," "expect,"
"forecast," "anticipate," "intend," "estimate," "plan" and "project" and
similar expressions of future or conditional verbs such as "will," "may,"
"should," "could," or "would."  By their very nature, forward-looking
statements require Deluxe and Hostopia to make assumptions and are subject to
inherent risks and uncertainties that are difficult to predict and are
generally beyond the control of Deluxe and Hostopia, which give rise to the
possibility that certain predictions, forecasts, projections, expectations and
other forward-looking information, including statements about the acquisition
of Hostopia by Deluxe, will not be achieved.  Deluxe and Hostopia caution
readers not to place undue reliance on these statements as a number of
important factors could cause actual results or events to differ materially
and adversely from the beliefs, plans, objectives, expectations,
anticipations, estimates and intentions expressed in, or implied or projected
by, the forward-looking statements.  These factors include, but are not
limited to, the following: the possibility that the acquisition of Hostopia by
Deluxe does not close when expected or at all because required regulatory,
shareholder or other approvals are not received or other conditions to the
closing are not satisfied on a timely basis or at all; the risks and
uncertainties associated with Deluxe's ability to complete the acquisition of
Hostopia and to integrate Hostopia with Deluxe successfully; the ability to
retain key personnel; the inherent unreliability of earnings, revenue and cash
flow predictions due to numerous factors, many of which are beyond Deluxe's
and Hostopia's control; developments in the demand for the combined companies'
products and services; relationships with major customers and suppliers;
unanticipated delays, costs and expenses inherent in the development and
marketing of new products and services, including new e-commerce, customer
loyalty and business services, and the failure of such new products and
services to deliver the expected revenues and other financial targets; the
impact of governmental laws and regulations; and competitive factors.  Readers
are cautioned that the foregoing list of important factors is not exhaustive.
Additional information concerning these and other factors that could cause
actual results and events to differ from Deluxe's and Hostopia's current
expectations are contained in Deluxe's and Hostopia's public filings with the
Securities and Exchange Commission, including but not limited to the factors
discussed under "Risk Factors" in Deluxe Corporation's Form 10-Q for the
period ended March 31, 2008 and Hostopia's Form 10-Q for the period ended
December 31, 2007 (each as updated by subsequent filings with the Securities
and Exchange Commission).
    Except as required by law, Deluxe and Hostopia assume no obligation to
update the forward-looking statements contained in this release to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

For further information:

For further information: Terry D. Peterson, VP, Investor Relations and 
Chief Accounting Officer of Deluxe Corporation, +1-651-787-1068; or Paul D. 
Engels, VP and Chief Marketing Officer of Inc., +1-416-883-6706
Web Site:

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