Business
Deluxe to Acquire Hostopia.com
Acquisition Provides Web-Hosting Capabilities for Small Businesses ST. PAUL, Minn. and MISSISSAUG...
About this update from Pure Energy Minerals Ltd.
[{"type":"text","content":"\n\n\n\nAcquisition Provides Web-Hosting Capabilities for Small Businesses\n\n\nST. PAUL, Minn. and MISSISSAUGA, Ontario, June 19 /CNW/ -- Deluxe\nCorporation (NYSE: DLX) and Hostopia.com Inc. (TSX: H) today announced that\nthey have entered into a definitive agreement for Deluxe to acquire Hostopia,\na leading provider of web services that enable small and medium-sized\nbusinesses to establish and maintain an Internet presence. Deluxe will\nacquire Hostopia in an all-cash transaction that values Hostopia at\napproximately C$124 million. Under terms of the Merger Agreement, Deluxe will\npay C$10.55 in cash for each outstanding Hostopia common share. Subject to a\nfinal accounting allocation of the purchase price, the acquisition is not\nexpected to have a significant impact to Deluxe's earnings and operating cash\nflow for fiscal 2008.\n\n\n"We are very excited with the prospect of providing Hostopia's\nindustry-leading, private-label web services to our small business customers\nand collectively growing our product and service offerings as we move forward\ntogether," said Lee Schram, Chief Executive Officer of Deluxe. "Hostopia has\ngrown top line revenue in excess of 20 percent in each of the last three\nyears. While we have substantial knowledge and expertise in selling to the\nsmall business market, we believe that Hostopia's ability to attract new\ncustomers and provide additional services to that market will increase the\npower of our offerings. This acquisition is in line with our long-term\nstrategy of broadening the products and services we offer to small businesses\nto manage, promote and grow their businesses. We also believe that the\ntransaction will offer significant value to our shareholders as we continue to\nintroduce growing products and services with recurring revenue streams."\n\n\nColin Campbell, Chief Executive Officer of Hostopia, said, "After careful\nconsideration, the Hostopia Board of Directors has unanimously approved this\ntransaction with Deluxe. We believe the transaction delivers outstanding\nvalue to the Hostopia stockholders. Deluxe and Hostopia have many\nsimilarities, including a desire to help small businesses grow and promote\ntheir businesses. Our customers will benefit from augmented product and\nservice offerings which include small business logo design, print-on-...