Jack Henry & Associates (JHA) provides integrated in-house and outsourced software systems for data processing to some 11,500 banks, credit unions, and other financial services companies. Products include core processing systems, electronic funds transfer (EFT) systems, automated teller machine networking products, digital check and document imaging systems, Internet banking tools, and customer relationship management (CRM) software. The company's three primary brands include Jack Henry Banking, Symitar, and ProfitStars. JHA also provides electronic bill payment services through iPay Technologies. It primarily serves small and midsized institutions in the US.
Based in Monett and Springfield, Missouri, JHA has other locations in Houston and Allen, Texas; Albuquerque, New Mexico; Birmingham, Alabama; Lenexa, Kansas; Angola, Indiana; Shawnee Mission, Kansas; Rogers, Arkansas; Oklahoma City; Elizabethtown, Kentucky; and San Diego, spanning more than 20 states.
More than 90% of the company’s revenue comes from its support and service division while remaining revenue is contributed by its hardware and license revenue.
JHA has enjoyed unprecedented revenue and net income growth over the past decade. In fiscal 2014 (ended June 30) it reported record-setting revenue of $1.21 billion, up 7% from 2013. The historic growth was fueled by increases across all components of support and service revenues, particularly its electronic payment services and their outsourcing services.
The company's profits were up 14% to $201 million in 2014, another company milestone. Its bottom line was helped by the spike in revenue coupled with a decrease in cost of sales and administrative expenses. JHA's operating cash flow has trended upwards as well, climbing from $309 million in 2013 to $342 million in 2014.
JHA uses a combination of alliances, internal product development, and acquisitions to expand its offerings for its core bank and credit union markets. The company has an alliance with IBM where it sells IBM hardware and equipment, resells maintenance on IBM hardware products, and designs IBM-compatible software. Other hardware by Dell, Digital Check, Lenovo, RDM, and Unisys are bought by JHA at a discount and resold to customers. Hardware sales accounted for 5% of revenue in 2014.
Mergers and Acquisitions
Since embarking on its acquisition strategy in 2004, the company has purchased some 20 companies. To expand its growing online and mobile suite, in 2014 it spent $28 million to purchase Banno, a company providing more than 375 financial institution customers with data-enriched Web and transaction marketing services with a focus on the mobile medium.