Jack Henry & Associates (JHA) provides integrated in-house and outsourced software systems for data processing to some 12,000 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.
JHA has enjoyed steady revenue and net income growth over the past decade. In fiscal 2012 (ended June 30) it reported revenue of $1 billion, up 6% from 2011. Net income was up 13% to $155 million. The company saw growth in all areas (support and service, hardware, license), with support and service sales particularly boosted by demand for electronic payment services. JHA's bottom line has been helped by its focus on cost control and its reduced interest cost due to continued long-term debt repayment.
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 6% of revenue in 2012.
Mergers and Acquisitions
Since embarking on its acquisition strategy in 2004, the company has purchased some 20 companies, including - in 2010 -- iPay Technologies, one of the largest independent electronic bill pay providers in the US and a long-time partner. The $301 million deal increased the company's transaction-based and recurring revenue streams and expanded its product line and its presence in the growing electronic payments industry. Other acquisitions that year include PEMCO Technology (payment processing for credit unions) and Goldleaf Financial (integrated technology and payment processing).