Deluxe acquires Celero Commerce for $625M in digital-payments pivot

Deluxe, the company that invented the pocket checkbook more than a century ago, is buying payment processor Celero Commerce for $625 million in cash, pushing more than half its revenue into digital payments.

The acquisition is the latest step in Chief Executive Barry McCarthy's effort to transform Deluxe from a legacy paper-check producer into a digital-payments company. "This transaction accelerates our strategy to build a modern payments platform for small and midsize businesses," McCarthy said in a statement.

Deluxe, which has a market capitalization of about $1.05 billion, will pay entirely in cash for Celero. The Nashville, Tennessee-based company generated more than $200 million in revenue in 2025 and is backed by private-equity firm LLR Partners. After the deal closes, about 57% of Deluxe's revenue is expected to come from payments and data services rather than its traditional paper-check business.

The deal reflects the declining role of paper checks in the U.S. economy. Checks remain widely used by small businesses but have become less common among large corporations, according to Federal Reserve research. Deluxe's paper-check sales have been declining even as the business remains profitable. The broader payment-processing market — the tools and services that let merchants accept cards and online payments — is dominated by a handful of major banks and financial technology companies including Fiserv, Fidelity National Information Services and Global Payments.

For Deluxe, the acquisition provides an immediate foothold in a market where scale is critical. Celero's focus on small and midsize merchants overlaps with Deluxe's existing customer base, which includes millions of small businesses that still use paper checks for payroll and accounts payable. The combined company can offer those clients a broader suite of digital payment options, from credit card processing to electronic invoicing.

The deal values Celero at roughly three times its 2025 revenue, a multiple in line with recent payment-processing acquisitions. The purchase price represents about 60% of Deluxe's market capitalization, making it a sizable bet on the company's digital future.

The transaction is expected to close in the second half of 2026, subject to regulatory approvals. Deluxe did not disclose the premium paid for Celero or the expected cost synergies from the combination. Financial advisers for each side were not yet disclosed.

This article is for informational purposes only and does not constitute investment advice.