Jack Henry acquires Ensenta Corporation
To boost JHA to nation's leading remote deposit solution provider
In a major move, Monett-based Jack Henry and Associates (JHA) acquired the Ensenta Corportation, expected to vault the company into the nation's leading provider of remote deposit solutions in the financial industry.
On Tuesday, JHA entered into a definitive agreement for the acquisition of California-based Ensenta, a leading provider of real-time, cloud-based solutions for mobile and online payments and deposits. Upon closing of the transaction, JHA and Ensenta will collectively support approximately 2,300 financial institutions with consumer remote deposit capture services.
Founded in 2001 in Silicon Valley, Calif., Ensenta supports more than 1,100 financial institutions and government agencies with patented technologies that work across ATM, mobile, online desktop, merchant and branch channels.
"Payments represents one of our fastest-growing business lines," said David Foss, president and CEO of JHA. "We're committed to supporting our customers with the best, high-demand payment solutions available today. This acquisition positions Jack Henry and Associates as the largest provider of consumer remote deposit solutions in the industry while significantly expanding the payment options we can offer to small businesses."
Under the terms of the definitive agreement, JHA at the closing will purchase all of the equity of Ensenta. Financial details were not disclosed.
Ensenta's well-established payment technologies reduce risk by users, minimize compliance exposure, increase back office efficiencies and improve funds availability for consumers and businesses through its Safer and Smarter real-time SaaS payment technologies. According to a company statement, Ensenta's risk management tools would enhance risk mitigation and compliance for the mobile remote deposit clients and partners served by Jack Henry and Associates' Enterprise Payment Solutions group. The acquisition also expands JHA's ability to conduct real-time transactions with third-party platforms.
"Through this acquisition we will more than double the number of credit unions served by our Enterprise Payment Solutions group, opening up new relationships and cross-selling opportunities in the credit union market," said Foss. "We are excited to have Ensenta join our team and we are confident that their proven solutions will expand our market presence and potential."
Ensenta's products and services have been distributed by leading mobile and online banking providers, core banking processors and ATM networks and manufacturers. Ensenta received two XCelent awards for technology and functionality by Celent.
"This acquisition delivers on our commitment to invest in our payments strategy," said Kevin Williams, JHA chief financial officer. "Ensenta has demonstrated strong market growth, client retention rates, recurring revenue, margins, and opportunity in adjacent markets. The solutions gained through this transaction are a natural complement to our existing payments suite and extend the breadth of technology that we can sell inside and outside our core bases and to new clients within our respective bases."
Ensenta also issued a statement supporting the move
"We are delighted to be joining Jack Henry and Associates, a market leader that shares our vision for delivering product and service excellence," said Edward Viera, Ensenta CEO. "They will provide us with access to significant resources for accelerating our innovation initiatives and an exciting growth opportunity for our clients, our people, and our products."
The acquisition is expected to close in December 2017, subject to regulatory approvals and customary closing conditions.
JHA s a leading provider of technology solutions and payment processing services primarily for the financial services industry. Its solutions serve approximately 9,000 customers nationwide.