Safeguard Business Systems, Dallas, will be acquired by New England Business Service Inc. in a $72.5 million all-cash transaction, it was announced yesterday.
The cash will be used to acquire all company stock and to retire revolving and term loans with Safeguard's financial institutions. Safeguard, which will operate as a wholly owned subsidiary, employs about 850 people, mainly in Dallas, Atlanta, Los Angeles and Philadelphia.
Three million small-business customers will be served by the entities, which provide products and services to small businesses.
Safeguard provides printed and branded products such as business forms, promotional items and corporate apparel. Its products are sold and delivered through a network of 360 local distributorships. Safeguard has manufacturing facilities in California, Georgia, Pennsylvania and Ontario.
NEBS is a business-to-business direct marketing company with 2.6 million small-business customers in the United States, Canada, United Kingdom and France. Its business products and services are marketed via direct mail, telesales, a direct sales force, dealers and the Internet.