Head office: 663 W. Hwy 60, PO Box 807, Monett, Mo 65708-8215 Tel: 417 235-6652 Other offices: 36 offices across the US Website:
www.jackhenry.com Contact: Susan Griffin Email:
sgriffin@jackhenry.com Founded: 1976 Ownership: Listed on Nasdaq (JKHY) Number of staff: 6,000+
Origins
When the idea for Jack Henry & Associates, Inc. was conceived in 1976, in-house computer systems for banks were expensive and only the largest banks could afford them. As a result, small banks had to send their information to the larger ones for processing. According to co-founder, Jack Henry, “We knew the smaller banks were tired of having their computer work done elsewhere and we actually created this business to equip those banks with everything they need, to do their own data processing.” Jack Henry wrote the first software package for IBM S/32 dubbed CIF 32, the genesis of today’s CIF 20/20 – based on the customer information file concept. This puts the system into the same generation as the likes of BIS Banking Systems’ Midas and Kapiti’s Equation (which today reside with Misys). As IBM came up with the S/34, S/36, S/38 and then, in 1986, the AS/400, so the system moved forward. In fact, there was a new development for the S/38 and this became Silverlake (Silverlake was the code name for the AS/400). The new system was aimed at larger banks from the outset. Meanwhile, JHA was incorporated in 1977 and generated
$115,222 in revenue. In 1985, an Initial Public Offering made JHA a public company trading 3,125,000 common shares on the NASDAQ exchange under the symbol JKHY. JHA also entered the hardware business that year and began remarketing IBM computer equipment directly to its clients. In 1992, JHA entered the outsourcing business. The
company’s main run of acquisitions also started in 1992. JHA began to aggressively acquire companies that expanded its product offering and its client base. Important among those acquisitions was the 1995 purchase of Liberty™ (a division of Broadway & Seymour). This acquisition marked when
JHA entered the outsourcing business, which
significantly increased recurring revenue and expanded sales opportunities.
In 1999, JHA acquired the Financial Systems Division
of BancTec, Inc. BancTec’s Core Director® core processing system enabled JHA to complement its CIF 20/20 and SilverLake systems with a Windows-based core processing solution. In 2000, JHA completed a secondary public offering of 1.5 million additional shares of JKHY. That same
96
year, JHA materially expanded its presence in the credit union marketplace by acquiring San Diego-based Symitar Systems Inc. The acquisition of Symitar and its Episys core processing system immediately positioned JHA as one of the leading providers of core systems for credit unions with assets exceeding $50 million. Added two years later was South Carolina-based CUSolutions and its Cruise core processing system for small and mid-size credit unions. The ability to support the small and mid-size credit union marketplace with Cruise strategically positioned JHA with a core processing solution for credit unions of all sizes – from the smallest to the largest. In 2004, JHA began its targeted acquisition strategy. This
strategy, dubbed the “focused diversification acquisition strategy” resulted in the acquisition of a number of companies and products that can be sold outside JHA’s core client base to all financial services organizations regardless of charter, asset size, core processing platform, as well as outside the financial services industry and selectively sold internationally. In 2006, JHA launched its third primary brand – ProfitStars – to encompass the specialized products and services assembled through this focused diversification acquisition strategy. In 2010 there was the largest acquisition to-date, iPay
Technologies, the largest independent electronic bill pay provider in the US. This acquisition added online bill pay services, technology, and expertise to support Jack Henry’s expansion in the payments industry. It broke the $1 billion revenue mark in 2012 although co-founder, Jack Henry, wasn’t around to see it, having passed away in 2007. In July 2016, Jack Henry & Associates Inc. announced the
transition of David Foss from president to president and chief executive officer (CEO). Jack Henry had revenues of $1.43 billion in fiscal year 2017, ended June 30, 2017. Earnings per share in FY17 was $3.14. The company continues to show promise and growth, be it through product enhancements or through acquisitions. JHA has garnered more than 50 acquisitions to-date, the most recent of which are Bayside Business Solutions in July of 2015 and Vanguard Software Group in August of 2017. Both of these acquisitions joined the company as part of its ProfitStars brand’s Lending Solutions Group.
US Financial Services Technology Market Report |
www.ibsintelligence.com
company details
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