Jack Henry acquires Victor Technologies to expand payment services

MONETT, Mo. - Jack Henry & Associates Inc. (Nasdaq:JKHY) announced Wednesday the acquisition of Victor Technologies, Inc., a provider of cloud-native embedded payments solutions, from MVB Financial Corp. (Nasdaq:MVBF).

The acquisition enhances Jack Henry’s capabilities in the Payments-as-a-Service (PaaS) market, allowing financial institutions to embed payment services into third-party, non-bank brands. Victor Technologies currently processes billions of dollars in payments monthly. The move comes as Jack Henry maintains strong financial performance with $624.73 million in EBITDA and revenue growth of 7.21% over the last twelve months.

"This acquisition advances our technology modernization strategy to help banks and credit unions compete and win through innovative, cloud-native solutions," said Jack Henry President and CEO Greg Adelson in a press release statement.

According to Research and Markets data cited in the announcement, the PaaS market is projected to grow from $19.1 billion in 2025 to $43.9 billion in 2029, representing a compound annual growth rate of 23.1%.

Founded in 2021 by MVB Bank, Victor is already integrated with Jack Henry’s SilverLake core bank system. The company plans to expand Victor’s capabilities to serve its Symitar credit union clients and integrate with the new Jack Henry Platform.

Victor’s offerings include real-time payment processing and virtual ledgering functionality across multiple payment types, including disbursements, receivables, cross-border transactions, escrow, title, and e-commerce.

The direct integration with Jack Henry’s banking core provides financial institutions with near real-time reconciliation capabilities and reduces overdraft risks.

Terms of the transaction were not disclosed. Jack Henry expects the acquisition to be minimally dilutive to GAAP EPS through fiscal 2027 before becoming accretive in fiscal 2028. Currently trading near its 52-week low with a P/E ratio of 23.87, InvestingPro analysis suggests the stock may be undervalued. Investors seeking deeper insights can access comprehensive financial analysis and 10+ additional ProTips through InvestingPro’s detailed research reports, available for over 1,400 US stocks including Jack Henry & Associates.

In other recent news, Jack Henry & Associates reported its fourth-quarter earnings for fiscal year 2025, surpassing analysts’ expectations. The company achieved earnings per share of $1.75, exceeding the forecasted $1.55, and reported revenue of $615.37 million, above the anticipated $601.33 million. Additionally, Jack Henry announced a regular quarterly cash dividend of $0.58 per share, payable on September 26, 2025, to stockholders of record as of September 5, 2025. In a strategic move, Jack Henry expanded its partnership with MeridianLink to enhance digital lending and account opening capabilities for community banks and credit unions. Under this expanded agreement, Jack Henry will resell MeridianLink’s suite of platform solutions. Meanwhile, DA Davidson adjusted its price target for Jack Henry to $204 from $212, while maintaining a Buy rating, following the company’s fiscal fourth-quarter results. These developments highlight significant activity and strategic decisions at Jack Henry & Associates.

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