Deluxe Corp. (NYSE: DLX) has purchased First Manhattan Consulting Group LLC (FMCG Direct), an analytics-based marketing services firm, for approximately $200 million. The deal will help Deluxe's clients to acquire, cross-sell and retain consumer, small business and commercial relationships.
FMCG Direct, based in New York, offers data-driven marketing campaigns and consulting services for clients in the financial services industry. The firm uses the Experience Audience IQ technology and segmentation to provide direct digital marketing campaigns geared for small businesses and consumers. FMCG Direct’s consulting services include: corporate strategy, organization design, merger integration, marketing effective assessments, product design and pricing, customer relationship management and e-commerce strategy. FMCG Direct benefits from higher revenues occurring later in the year due to increased seasonal marketing campaigns from financial service businesses.
Deluxe designs and manufactures customizable checks, billing forms, invoices, purchases orders, work orders, job proposals, stamps, labels, envelopes and other marketing accessories for small businesses and financial institutions. The buyer operates from its three divisions, including: small business services, financial services, and direct checks. In addition to logo designing and print marketing, Deluxe also offers digital marketing tools such as web design, website hosting, social media marketing, and search engine optimization. The target’s services will be sold through Deluxe’s financial services division. The FMCG Direct transaction closed on Dec. 30, 2016.
There’s a strong demand for data and analytics providers, as quite a few sectors, essentially retail, have been disrupted by the Internet and its capabilities. Recent deals include: The Carlyle Group's (Nasdaq: CG) acquisition of consumer data provider Claritas from Nielsen (NYSE: NLSN); Blackstone Group LP (NYSE: BX) and New Mountain Capital’s $570 million investment in retail data provider JDA Software Group Inc.; HGGC’s add-on acquisitions to portfolio company Survey Sampling, a brand tracker; and Summit Partner’s investment in retail data firm Mi9 Retail. Petsky Prunier LLC served as financial adviser to Deluxe on the FMCG Direct deal.