Filing Flows › Deluxe (DLX) › Takeover & LBO
Is Deluxe (DLX) a takeover target?
A leveraged buyout at today's price plus 30% ($29.37 a share) would return about 6% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $12.58 a share (−44% against today's $22.59). Historically 6.2% of companies with its figures were bought within a year (1.24× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $29.37 | today's $22.59 plus 30% |
| × shares | 46.5 million | |
| = Equity value | $1.4B | |
| + Debt refinanced | $2.0B | |
| − Cash | $74.9M | |
| + Other claims | $400K | preferred stock, minority interests |
| = Enterprise value | $3.3B | 8.6× EBITDA of $383M |
| Fees | $65.9M | 2% of the price |
| New debt | $2.1B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $1.3B | 37% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.1B | $385M | $161M | $98.2M | $2.0B |
| Year 2 | $2.2B | $388M | $154M | $104M | $1.9B |
| Year 3 | $2.2B | $395M | $146M | $112M | $1.8B |
| Year 4 | $2.2B | $404M | $137M | $122M | $1.7B |
| Year 5 | $2.3B | $416M | $128M | $133M | $1.5B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 7.8× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $3.2B | |
| − Debt left | $1.5B | |
| = Buyer's equity | $1.7B | |
| Money multiple | 1.36× | on $1.3B put in |
| Buyer's yearly return (IRR) | 6.3% |
Price against return
What the buyer makes at other premiums over today's $22.59; the IRR reaches 20% at $12.58 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $24.85 | 9.9% |
| 20% | $27.11 | 8.1% |
| 30% | $29.37 | 6.3% |
| 40% | $31.63 | 4.6% |
| 50% | $33.88 | 3.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.1B | |
| EBITDA, last 12 months | $383M | 18.0% of revenue |
| Depreciation and amortization | $155M | |
| Capital spending | $104M | |
| Debt | $2.0B | |
| Cash | $74.9M | |
| Share price | $22.59 | on Oct 30, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 0.4% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 30% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Deluxe would cost about $29.93 a share, $1.4B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $27.11 | $1.3B |
| Median | 32.5% | $29.93 | $1.4B |
| High end (a quarter paid more) | 51.8% | $34.29 | $1.6B |
The odds, from history
Historically 6.2% of companies with its figures were bought within a year (1.24× the average). Its figures put it in decile 8 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Deluxe's latest quarter
Deluxe, Q3 2026: revenue $554M (+2% year over year), operating margin 9.5%, net earnings $13.0M, operating cash flow $82.0M. The chart follows the revenue to costs, profit and cash.
Questions
Is Deluxe being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Deluxe?
A leveraged buyout at today's price plus 30% ($29.37 a share) would return about 6% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $12.58 a share (−44% against today's $22.59).
What would a takeover of Deluxe cost?
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Deluxe would cost about $29.93 a share, $1.4B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.