Jack Henry to Acquire Pemco Technologies
Jack Henry & Associates has announced the acquisition of Washington-based Pemco Technologies, a wholly owned subsidiary of PEMCO Corporation and one of the nation's leading providers of payment processing solutions primarily for the credit union industry. Terms of the transaction were not disclosed.
Pemco Technologies' products and services include credit signature processing; debit signature processing; PIN-based processing; ATM services; cardholder awards programs; fraud management, detection, and prevention solutions; personalized cards; and prepaid card programs. These payment-related products and services are currently supporting approximately 235 financial institution customers.
According to Jack Prim, CEO of Jack Henry & Associates, "This acquisition supports our expansion in the growing electronic payments industry with solid credit card solutions that complement the broad array of ATM and debit card solutions we already provide through our jhaPassPort product suite. This acquisition also expands our presence in the credit union space and enables us to broaden our reach outside our 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 that we believe exist with a richer product offering that supports the growing electronic payments segment of the financial services industry."
Kevin Williams, CFO of Jack Henry & Associates, said, "Acquiring Pemco Technologies supports our strategy to buy companies with proven solutions that complement our existing product offering and that have a corporate culture that like ours is dedicated to providing high quality technology solutions and excellent customer service. This acquisition will generate cross-sale opportunities among our respective client bases and generate new sales opportunities with financial institutions outside our core client base. We expect this acquisition to be slightly accretive in the first full year and improve beyond that as we recognize the full impact of operational synergies."
PEMCO Corporation elected to divest this business line in order to strategically focus on its primary insurance business which encompasses life, home, auto, and boat insurance offerings.
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