Jack Henry expands credit union services with CU Solutions Inc.

Monett-based Jack Henry & Associates announced Nov. 18 that it has purchased CU Solutions Inc. Terms of the transaction were not disclosed.

CU Solutions is a provider of in-house data processing solutions for smaller credit unions, primarily those with assets less than $20 million.

With its headquarters in Charlotte, N.C., privately held CU Solutions is a profitable company serving more than 140 credit unions.

Its flagship product, Cruise/SQL, is a PC-based software solution that is scalable, open and user friendly. Cruise/SQL data storage and data access methods are built around the SQL Server database with the ease of use of the point and click' Windows interface.

Founded in 1982, CU Solutions generated revenues of approximately $2 million, of which approximately 40 percent was recurring revenue, in its year ended December 31, 2001.

"This acquisition adds an extremely robust and affordable core solution to our suite of offerings. It fills a void in our product offerings for the smaller credit unions which allows us the ability to effectively market to any size credit union," said Michael E. Henry, chairman and CEO of Jack Henry.

He added, "In addition, acquiring CU Solutions brings significant intellectual capital that is highly sophisticated for a firm of its size. CU Solutions' functionality, connectivity, system tools and front-end implementation processes are superb, and our existing personnel are excited about sharing ideas and expertise."

CU Solutions employs 20 individuals in the greater Charlotte area.

Jack Henry & Associates has an office in Charlotte where approximately 100 employees are located.

"We will begin immediately to integrate the CU Solutions personnel into Jack Henry's nationwide internal network. CU Solutions will continue to operate as a wholly-owned subsidiary as part of (the company's) credit union segment," said Jack Prim, Jack Henry's chief operating officer. "We expect to retain all of the CU Solutions team, as well as consolidate our Charlotte area offices in the near future."

Jack Henry entered the credit union segment in 1998 with its acquisition of The Peerless Group, whose Conductor credit union product was designed for the mid-sized market.

In 2000, the company acquired Symitar and its Episys core solution for credit unions.

Episys has gained favor among larger credit unions. At the time of the Symitar acquisition, the company also made the decision to market all of its credit union products under the Symitar brand.

Jack Henry & Associates, Inc. provides integrated computer systems and processes ATM and debit card transactions for banks and credit unions.