Earlier Thursday, we highlighted an
IT services M&A watch list that Jack Henry & Associates Inc. (NASDAQ:JKHY) made as a possible acquisition target. If it were to get acquired, a buyer would have to shell out a little more since the Monett, Mo.-based company just
acquired Pemco Technologies, a subsidiary of Pemco Corp., a major provider of payment processing solutions primarily for the credit union industry. Terms were not disclosed.
The deal is pretty straightforward: Jack Henry provides data processing services for financial institutions, and Seattle's Pemco Tech complements its ATM and debit card services it already provides through the jhaPassPort product suite.
Jack Henry CEO Jack Prim said in a statement that the deal also expands the company's presence in the credit union space, allowing reach outside its core client base. "We can sell these solutions to any credit union, regardless of core processing system, that has an in-house credit card program and needs a third-party gateway service to pass credit card transactions to Visa and MasterCard for processing. We are excited about the sales opportunities."
Pemco Corp. is divesting the payment solutions business to focus on its insurance business, which includes life, home, auto and boat insurance offerings. Pemco Tech has 235 financial institution customers, while Jack Henry services about 8,700 financial institutions and corporate entities.
Earlier this month, Jack Henry
closed its $61 million (including debt) acquisition of Brentwood, Tenn., counterpart Goldleaf Financial Solutions Inc.
Jack Henry has a first-quarter fiscal 2010 earnings conference
call scheduled for Nov. 4 beginning at 8:45 a.m. ET. -
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