Pending regulatory approval, iPay Technologies becomes a wholly owned subsidiary of JHA. The purchase of all of the equity of iPay was announced at approximately $300 million in cash.
"This acquisition represents our largest to date," said Kevin Williams, JHA chief financial officer. "It expands our presence and potential in the growing payments industry with a highly competitive on-line bill pay solution that complements our existing offering and increases our transaction-based and recurring revenues.
"We expect that our combined capabilities and resources will allow us to further enhance and expand the best-of-breed products and services that iPay's customers and partners receive today while further strengthening our electronic payments offering," Williams added.
iPay has strategic partnerships with more than 50 providers of information processing and on-line banking solutions. iPay's turnkey on-line bill pay services, technology and expertise are supporting more than 3,600 banks and credit unions. iPay partners with companies like JHA to provide on-line bill payment solutions to financial institutions and ultimately supports those institutions' retail and small business customers with a highly configurable electronic payments platform.
"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.
Financial Technology Partners and FTP Securities (together "FT Partners") served as sole capital markets advisor to Jack Henry in the transaction. JHA was advised by Wells Fargo Securities and the law firm of Stinson Morrison Hecker LLP.
JHA is a leading provider of computer systems and ATM/debit card/ACH transaction processing services primarily for financial services organizations. Its technology solutions serve more than 11,800 customers nationwide.