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Deluxe Overstates Divestiture Gain By Twenty-Five Percent
Check maker’s gain is millions of dollars less than originally reported.
November 5, 2023
Midway through 2023 Deluxe Corporation (DLX), a check and payments solutions provider, sold its web hosting and logo design business. In the latest quarter, Deluxe revealed it had overstated the gain on the sale of the business unit.
In the quarter ended September 30, 2022 Deluxe recorded an out-of-period correcting adjustment that decreased the gain recognized on this sale by $4.45 million.
The correction indicates Deluxe overstated the gain on the sale by 25.48%.
Deluxe says the error isn’t material.
It does not appear the company will correct prior filings that contain the inaccuracy.
Separately, Deluxe might also adjust certain sales sometime after mid-2024 after exiting its U.S. based payroll business. Deluxe converted customers to another vendor and received $10 million upfront.
However, the total consideration will not be calculated until next year and based on actual customer conversion and retention activity.
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