NEBS to Acquire Safeguard Business Systems
DALLAS-New England Business Service (NEBS) plans to acquire Safeguard Business Systems in a $72.5 million all-cash transaction.
The cash proceeds will be used to acquire all company stock, as well as to retire revolving loans and term loans with Safeguard's financial institutions. Safeguard will operate as a wholly owned subsidiary.
This is a strategic move for both companies, allowing each to create competitive advantages in the marketplace.
The company employs approximately 850 people, primarily in Dallas, Atlanta, Los Angeles and Philadelphia.
"Like NEBS, Safeguard has a long history of providing products and services to small business customers," says Mike Magill, president and CEO of Safeguard Business Systems. "Together, our companies will now serve more than three million small business customers who will benefit from our combined expertise."
Safeguard has focused on serving the small business market for almost 50 years.
Since 1956, the company has grown from manufacturing checks and check writing systems to now deliver a broad spectrum of printed and branded products that meet the special needs of small businesses, including business forms, promotional items and corporate apparel.
Safeguard products are sold and delivered through a network of approximately 360 local distributorships.
In addition to the company's corporate headquarters in Dallas, Safeguard has manufacturing facilities in California, Georgia, Pennsylvania and Ontario, Canada.