Press Release |
Transaction Profile |
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Overview of Transaction
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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) |
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Jack Henry also anticipates significant annual cost synergies from the combination of the two companies |
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Jack Henry provides integrated technology solutions and data processing services to financial institutions including commercial banks and credit unions |
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Goldleaf offers integrated technology and payment processing solutions for community banks and financial institutions; Goldleaf will become a wholly-owned subsidiary of Jack Henry |
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The transaction closed on October 1st |
Significance of Transaction
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The two companies have complementary clients, technology, services and business models that will allow them to deliver more comprehensive product and service offerings |
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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 |
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Goldleaf represents Jack Henry's 17th acquisition since 2003 |
FT Partners' Role
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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.
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