Jack Henry to purchase electronic bill pay company

Monett-based banking software provider Jack Henry & Associates Inc. (Nasdaq: JKHY) has agreed to acquire Kentucky-based electronic bill pay provider iPay Technologies, according to a Jack Henry announcement Friday.

Founded in 2001, iPay is the largest independent electronic bill pay provider in the country, working with more than 3,600 banks and credit unions through partnerships with information processing and online banking providers, according to the announcement.

Under the terms of the agreement, Jack Henry will purchase all of the equity of iPay, currently a portfolio company of Spectrum Equity Investors and Bain Capital Ventures, for $300 million in cash.

Services provided by iPay include person-to-person payments, account-to-account transfers and electronic bill presentment, according to the announcement.

"We pursued this acquisition based on our first-hand experience with iPay's payments expertise and technology, its commitment to consistently deliver best-of-breed solutions, the outstanding service levels it provides, and our consistent corporate cultures," CEO Jack Prim said in the announcement, noting that Jack Henry and iPay had a working relationship prior to the acquisition. "This is a key acquisition that supports our expansion in the electronic payments industry and further strengthens our payments offering."

The acquisition is expected to close in June, subject to regulatory approval. Shares of Jack Henry closed Friday at $24.46, compared to a 52-week range of $17.55 to $26.50. Shares were up to $25.05 at 10:30 a.m. Monday.