Financial technology firm DH Corporation (DH.TO) announced on Monday it will slash its quarterly dividend 62.5 per cent in a move it calls "consistent with [its] ongoing strategic transformation."

Starting Jan. 1, DH's quarterly payout will drop to 12 cents per share from 32 cents. 

DH said the move will result in $85.5 million in savings next year. The Toronto-based company said it expects to allocate 45 to 50 per cent of the money to stock repurchases, 40 to 45 per cent on debt reduction and the rest in growth initiatives.  

"We believe the decision to reduce our dividend at this time is in the best interest of the company, and will support our shareholder value and growth objectives," said DH chief executive Gerrard Schmid in a statement. 

Previously called Davis and Henderson, DH was formerly a supplier of paper cheques, but has diversified into technology for the financial services industry.  

DH's shares were trading up nearly 8 per cent to $15.70 on the Toronto Stock Exchange at mid-day on Monday.