Parago provides incentive and engagement solutions that help drive customer acquisition and employee retention. The company also helps "enable and engage channel sales partners."
BlackHawk said the acquisition will "add significant capabilities to Blackhawk's already extensive incentive solutions business."
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"Blackhawk has continued to grow its business solutions in the prepaid payment industry around the world", Blackhawk CEO Bill Tauscher said. "Adding Parago into our portfolio is a significant step forward for Blackhawk's expansion plans in the large but fragmented incentives market."
The acquisition is expected to close by Oct. 31.
TheStreet Ratings team rates BLACKHAWK NETWORK HLDGS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BLACKHAWK NETWORK HLDGS INC (HAWK) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."