Exhibit 99.1
Company: Jack Henry & Associates, Inc. Analyst Contact: Kevin D. Williams
663 Highway 60, P.O. Box 807 Chief Financial Officer
Monett, MO 65708 (417) 235-6652
IR Contact: Jon Seegert
Director Investor Relations
(417) 235-6652
JACK HENRY ANNOUNCES THE ACQUISITION OF PROFITSTAR
Monett, MO - November 11, 2005 - Jack Henry & Associates, Inc. (Nasdaq:
JKHY), a leading provider of integrated computer systems and ATM/debit
card/ACH transaction processing, today announced its acquisition of
Profitstar, Inc. The Omaha, Nebraska-based company provides state-of-the-
art asset/liability management, profitability management, and budget and
reporting solutions; and has earned a relationship with more than 2,000
bank and credit union clients during its 22-year history. Terms of the
transaction were not disclosed.
According to Bill Goedken, president of Profitstar, "The long-term success
of Profitstar is based on the combination of outstanding software products
and time-proven support services. Since our products help financial
institutions better manage and maximize their performance, it is important
that we continue our tradition of commitment to our clients. We expect
the opportunity to join Jack Henry, which is an exciting milestone
for Profitstar, will further enhance the product and service levels our
clients expect from us. Joining Jack Henry also will ensure our long-term
viability, provide immediate access to the expanded resources we need to
keep our financial management products competitively distinct, and protect
the service-oriented corporate culture that we share with Jack Henry.
Operating as a strategic subsidiary will enable Profitstar to share in the
strength and knowledge of Jack Henry, and will provide our employees with
the opportunity to work for a great company that cares about its associates.
This acquisition is truly a win-win for our clients, our employees, our
company, and Jack Henry."
"Following our acquisition of Stratika in January of 2005, we established an
agreement that enabled Profitstar to remarket Stratika's Relationship
Profitability Management solution as a natural extension of its proprietary
product line. The working relationship we established with Profitstar
demonstrated the mutual benefits and business opportunities we could
capitalize on, including the cross-sale opportunities within our respective
client bases and the sales opportunities outside our collective client
base," said Tony Wormington, president of Jack Henry & Associates.
According to Jack Prim, CEO of Jack Henry & Associates, "Profitstar is the
latest in a series of acquisitions that support Jack Henry's focused
diversification strategy. Prior to 2004, we primarily acquired companies
that provided complementary products and services that could be integrated
with our core information processing platforms and sold almost exclusively
to our existing clients. Since the beginning of 2004, we have been
acquiring companies that provide highly specialized solutions that can
be sold to virtually any financial services organization regardless of
asset size, charter, or core processing solution. The target markets for
the products and services provided by these acquired companies include
thousands of financial services organizations for whom we previously had
no appropriate offering, which expands our reach well beyond our traditional
markets."
"We are excited about the operational benefits and business opportunities
our remarketing relationship identified. We have a proven process to
efficiently and effectively integrate all aspects of Profitstar in Jack
Henry & Associates, which will be seamless for Profitstar's impressive
roster of domestic and international clients. This process allows us to
continue selling and delivering Profitstar products, and to cross sell these
products into our respective customer bases. We expect this acquisition
will contribute $6.0 to $8.0 million in gross revenue for the remainder of
fiscal year 2006, and should have a slightly accretive impact on EPS,"
concluded Kevin Williams, CFO of Jack Henry & Associates.
About Profitstar
Profitstar, Inc. is a leading provider of financial management solutions
that enable diverse banks and credit unions to better manage and maximize
their performance . The PROFITstar[R] asset/liability management and
budgeting system, and the PROFITability[R] system are Profitstar's flagship
products. These innovative systems are available for in-house installation
or through an outsourced offering; and are supported with comprehensive
training programs, expert consulting services, and superior support
services. Profitstar has served the financial services industry for more
than 22 years and currently supports more than 2,000 domestic and
international clients.
About Jack Henry & Associates
Jack Henry & Associates, Inc. provides integrated computer systems and
processes ATM and debit card transactions for banks and credit unions. Jack
Henry markets and supports its systems throughout the United States, and has
more than 7,000 customers nationwide. For additional information on Jack
Henry, visit the company's Web site at www.jackhenry.com.
Statements made in this news release that are not historical facts are
forward-looking information. Actual results may differ materially from
those projected in any forward-looking information. Specifically, there are
a number of important factors that could cause actual results to differ
materially from those anticipated by any forward-looking information.
Additional information on these and other factors, which could affect the
Company's financial results, are included in its Securities and Exchange
Commission (SEC) filings on Form 10-K, and potential investors should review
these statements. Finally, there may be other factors not mentioned above
or included in the Company's SEC filings that may cause actual results to
differ materially from any forward-looking information.
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