Jack Henry & Associates is to expand its US payments business with the acquisition of the country's largest independent electronic bill pay provider, iPay Technologies for £300 million.
Kentucky-based iPay Technologies is a portfolio company of Spectrum Equity Investors and Bain Capital Ventures. The nine-year old firm's online bill payment technology is used by 3600 banks and credit unions through partnerships with up to 50 independent e-banking vendors.
Services include person-to-person payments, account-to-account interbank transfers, electronic bill presentment, the ability to pay bills from multiple accounts, expedited payments, payment tracking, automatic text alerts and payment reminders. Its small business bill pay suite includes functionality that permits users to delegate and manage payment tasks with strict entitlement controls.
Jack Henry currently utilises the iPay platform to process the electronic bill payments initiated through it NetTeller Bill Pay system at 1075 banks and credit unions.
Kevin Williams, Jack Henry CFO, says: iPay Technologies, which is our largest acquisition to-date, adds proven solutions that complement our existing products and services, expands our presence and potential in the growing payments industry, broadens our reach outside our core client base with a highly competitive online bill pay solution, and increases our transaction-based and recurring revenues."
The acquisition is expected to close in June 2010, subject to regulatory approvals.