FT Partners Advises on $60,500,000 Acquisition of Goldleaf Financial Solutions
Overview of Transaction
- On August 17, 2009 Goldleaf Financial Solutions (NASDAQ: GFSI) announced its sale to Jack Henry & Associates (NASDAQ: JKHY) for approximately $60.5 million in cash
- $19.1 mm in equity plus assumption of approximately $41.4 mm of debt
- Jack Henry's cash offer of $0.98 per share of Goldleaf represents a 40% premium over the closing share price on August 14th
- Represents 0.7x LTM revenue and 4.8x LTM EBITDA(1)
- Jack Henry also anticipates significant annual cost synergies from the combination of the two companies
- Jack Henry provides integrated technology solutions and data processing services to financial institutions including commercial banks and credit unions
- Goldleaf offers integrated technology and payment processing solutions for community banks and financial institutions; Goldleaf will become a wholly-owned subsidiary of Jack Henry
- The transaction closed on October 1st
- The two companies have complementary clients, technology, services and business models that will allow them to deliver more comprehensive product and service offerings
- The acquisition allows Jack Henry to expand its current payment processing platform to address the growing remote deposit capture services market with Goldleaf's industry leading solution
- Goldleaf represents Jack Henry's 17th acquisition since 2003
- FT Partners served as exclusive strategic and financial advisor to Jack Henry and its Board of Directors
(1) Source: SEC Filings; LTM refers to period beginning Q2 2008 and ending Q1 2009.