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FT Partners Advises on Jack Henry's $300 Million Acquisition Financing of iPay Technologies

FT Partners Advises on Jack Henry's $300 Million Acquisition Financing of iPay Technologies
Overview of Transaction
  • On June 7, 2010, Jack Henry & Associates ("Jack Henry"; NASDAQ: JKHY) announced the completion of its acquisition of iPay Technologies ("iPay") for $300 million in cash
  • iPay provides turnkey, SaaS-based bill pay solutions to over 3,600 financial institutions across the country
  • Jack Henry provides integrated technology solutions and data processing services to financial institutions including commercial banks and credit unions; the Company had a ~$2 billion market cap at the time of the transaction
  • iPay represents Jack Henry's largest acquisition to date
Significance of Transaction
  • iPay's industry-leading, proven solutions complement Jack Henry's existing offerings, providing significant cross-sell opportunities and extending Jack Henry's reach outside of its core client base
  • iPay's compelling financial profile increases Jack Henry's transaction-based and recurring revenue streams
  • The acquisition enables Jack Henry to better serve customers and channel partners through availability of enhanced products and services
FT Partners' Role
  • FT Partners has worked closely with Jack Henry and its management team for several years and has advised on its two largest acquisitions
  • FT Partners previously served as exclusive and strategic advisor to Jack Henry in its acquisition of Goldleaf Financial Solutions in 2009
  • FT Partners acted as sole debt capital markets advisor to Jack Henry
  • FT Partners leveraged its extensive transactional experience in the payments and banking sector to provide guidance on appropriate deal structure and support during key negotiations
  • Executed a competitive bidding process, which yielded proposals from lenders and resulted in the timely availability of debt financing with favorable terms and conditions