Acquisition and divestitures

9 Months Ended

Sep. 30, 2025


NOTE 6: ACQUISITION AND DIVESTITURES

Asset acquisition – On August 6, 2025, we acquired certain assets of JPMorgan Chase Bank’s CheckMatch electronic check conveyance service business for cash payments totaling $24,600, approximately half of which was paid at closing and the remainder to be paid in the first quarter of 2026. The assets acquired consisted of a lockbox network intangible asset, included in other intangibles in Note 3, with a fair value of $14,100 and a useful life of 10 years and a customer relationship intangible asset with a fair value of $10,500 and a useful life of 7 years. Information regarding these fair value estimates can be found in Note 7.

Divestitures – In recent years, we decided to exit certain businesses and dispose of other assets. We believe these actions have enabled us to concentrate our resources on our growth businesses, while optimizing our operations.

In September and December 2023, we executed agreements to transition our U.S. and Canadian payroll and human resources services customers to other service providers. The recognition of income from this business exit was based on the timing of customer conversion and retention activities, which were substantially completed during 2024. During the quarter ended September 30, 2024, we recognized a related goodwill impairment charge of $6,700, as we determined that the remaining cash flows expected to be generated by these businesses no longer supported the carrying value of the related reporting unit. The remaining cash proceeds from this business exit were received during the quarter ended March 31, 2025. The results of this business are reported as All other in Note 13.

Business exits and asset sales were as follows for the nine months ended September 30, 2025 and September 30, 2024:


(in thousands)	Gain on sale of businesses and long-lived assets		Proceeds from sale of businesses and long-lived assets
Nine months ended September 30, 2025:
Payroll and human resources services business	$	—	$	1,968

Nine months ended September 30, 2024:
Payroll and human resources services business	$	28,190	$	18,321
Small business distributor customer list(1)	1,000		—
Total	$	29,190	$	18,321

(1) A note receivable was executed in conjunction with this sale. No cash proceeds were received.