Jack Henry & Associates To Acquire Goldleaf

Published: 18-Aug-2009

The companies anticipate that the combined organization will deliver a much broader array of products and services that will provide opportunities for growth and efficiency

Jack Henry & Associates, a provider of integrated technology solutions and data processing services for financial institutions, has agreed to acquire Goldleaf Financial Solutions, a provider of integrated technology-based solutions.

Under the terms of the agreement, Goldleaf will become a wholly-owned subsidiary of Jack Henry. Also, Goldleaf's shareholders will receive $0.98 per share in cash in exchange for their shares, representing a premium of approximately 40% over Goldleaf's closing share price on August 14, 2009. In addition, Jack Henry will retire certain of Goldleaf's outstanding debt and accrued interest obligations, which is anticipated to equal approximately $42 million at closing.

Lynn Boggs, CEO of Goldleaf, said: Our customers will benefit from an expanded product offering and continued commitment to superior service. Jack Henry shares in our deep-rooted devotion to help financial institutions succeed in today's competitive market, solidify their trusted financial relationships, expand their presence and improve returns through the efficient use of technology. This transaction also provides our employees with an opportunity to continue with an organization committed to growth and excellence.

According to Jack Prim, CEO of Jack Henry & Associates: The combined company will offer one of the most comprehensive product and service offerings available today, will be positioned to leverage a broader market presence and capitalize on increased market potential, and will have a stronger competitive position. Following this merger, our revenue stream will be slightly more diversified and we anticipate long-term organic revenue growth and significant cost synergies. We believe this transaction will increase the value that we provide to our shareholders and our customers.

The transaction, which is expected to be completed by the end of the third quarter or early in the fourth quarter, is subject to the approval of Goldleaf's shareholders and customary closing conditions.

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