Monett, MO - Jack Henry & Associates, Inc. (Nasdaq: JKHY), a leading provider of integrated technology solutions and data processing services for financial institutions, today announced that it had entered into a definitive agreement for the acquisition of Kentucky-based iPay Technologies, a portfolio company of Spectrum Equity and Bain Capital Ventures. iPay was founded in 2001 and currently operates as the largest independent electronic bill pay provider in the United States. Through strategic partnerships with more than 50 providers of information processing and online banking solutions, iPay's turnkey online bill pay services and technology are supporting more than 3,600 banks and credit unions. Under the terms of the definitive agreement, at the closing Jack Henry will purchase all of the equity of iPay for a purchase price of $300 million in cash, subject to certain closing and post-closing adjustments.
iPay partners with companies like Jack Henry & Associates to provide online bill payment solutions to financial institutions and supports those institutions' retail and small business customers with a highly configurable electronic payments platform. iPay's retail bill payment services include person-to-person payments, account-to-account interbank transfers, electronic bill presentment, the ability to pay bills from multiple accounts, expedited payments, payment tracking, automatic text alerts and payment reminders. Its small business bill pay suite includes functionality that permits users to delegate and manage payment tasks with strict entitlement controls, enforce dual account signature requirements to ensure established payment approvals, create customized electronic invoices and manage receivables.
According to Jack Prim, CEO, "iPay operates as a seamless extension of its business partners with a sophisticated bill pay engine that easily integrates with any online banking solution. We have been long-time business partners with iPay and have used its platform to process the electronic bill payments initiated with our NetTeller Bill Pay solution used by more than 1,075 banks and credit unions. We pursued this acquisition based on our first-hand experience with iPay's payments expertise and technology, its commitment to consistently deliver best-of-breed solutions, the outstanding service levels it provides, and our consistent corporate cultures. This is a key acquisition that supports our expansion in the electronic payments industry and further strengthens our payments offering."
Kevin Williams, CFO, said, "Consistent with our disciplined acquisition strategy, iPay Technologies, which is our largest acquisition to-date, adds proven solutions that complement our existing products and services, expands our presence and potential in the growing payments industry, broadens our reach outside our core client base with a highly competitive online bill pay solution, and increases our transaction-based and recurring revenues."
"iPay and Jack Henry have enjoyed a great partnership and we are thrilled that our two companies are now coming together," said Bill Ready, President of iPay Technologies. "Jack Henry has a reputation for outstanding service and provides a breadth of phenomenal products. Our combined capabilities will allow us to further enhance and expand the high quality, innovative products and services that our customers and partners receive from us today."
The acquisition is expected to close in June 2010, subject to regulatory approvals and customary closing conditions. Jack Henry & Associates was advised by Wells Fargo Securities and the law firm of Stinson Morrison Hecker LLP. William Blair & Company served as iPay's financial advisor in the transaction, and Choate, Hall & Stewart LLP provided legal counsel to iPay.