News

Deluxe Corporation to split off eFunds

February 1, 2000

ST. PAUL, Minn. -- Deluxe Corporation's board of directors has approved a plan for a strategic realignment of Deluxe that will create two independent companies. Under the plan, Deluxe will combine its eFunds and iDLX Technology Partners businesses into a separate, independent publicly traded company, to be called eFunds Corporation. eFunds provides e-payment products and services including electronic transaction processing, electronic funds transfer and integrated payment protection services to the financial and retail industries. iDLX provides information technology and technology-related professional services to financial services companies as well as Deluxe's businesses. Deluxe plans to sell a minority interest in eFunds to the public through an initial public offering. Following the IPO, Deluxe intends to pursue a split-off of eFunds Corporation through an exchange offer that would provide Deluxe shareholders the opportunity to exchange, on a tax-free basis, shares of Deluxe common stock for shares of eFunds Corporation. Deluxe expects to continue its $1.48 annual dividend. Deluxe Paper Payment Systems (PPS), Deluxe's check printing business, will continue to operate under the Deluxe Corporation name and continue to trade under the ticker symbol DLX. J.A. Blanchard, Deluxe Corporation chairman and CEO, called the plan "consistent with our strategy to create strategically focused enterprises that can independently achieve their business objectives and pursue growth opportunities in their respective markets." Blanchard will become chairman and CEO of the new eFunds Corporation. Debra Janssen, president and CEO of today's eFunds division, will become president and COO of the new eFunds entity. Nikhil Sinha, president and CEO of iDLX Technology Partners, will become executive vice president for global corporate development, reporting to Blanchard. eFunds Corporation will be headquartered in Milwaukee. Blanchard will continue as chairman, president and CEO of Deluxe Corporation until the split-off is completed. Following the split-off, Lawrence J. Mosner, currently vice chairman of Deluxe Corporation, will become chairman and CEO of Deluxe Corporation. Ronald E. Eilers, currently president and CEO of Deluxe Paper Payment Systems will become president and COO of Deluxe Corporation. Deluxe Corporation will continue to be headquartered in St. Paul, Minn. As a result of this announcement and SEC prefiling restrictions, Deluxe is cancelling its Feb. 15 investors conference in New York. In addition, Deluxe intends to reschedule the May 9 shareholder meeting to a later date to be determined by the board.