MVB Financial sells Victor Technologies to Jack Henry in $33 million deal

FAIRMONT, W.Va. - MVB Financial Corp. (NASDAQ:MVBF) announced Wednesday it has completed the sale of its subsidiary Victor Technologies to Jack Henry & Associates (NASDAQ:JKHY) in a transaction expected to generate approximately $33 million in pre-tax gains.

The deal, which closed on September 30, represents a significant return on MVB’s investment in Victor, a fintech company founded just four years ago in 2021 and developed within MVB. According to the company’s statement, the transaction is expected to be accretive to MVB’s earnings per share through improved cost structure and lower overhead expenses. For Jack Henry, which generated $2.38 billion in revenue over the last twelve months, the acquisition aligns with its strategy of expanding its technology solutions portfolio. InvestingPro data shows Jack Henry maintains a perfect Piotroski Score of 9, indicating strong financial health.

Victor Technologies processes billions of dollars in payments monthly through its embedded payments platform, which provides real-time payment processing, virtual ledgering and regulatory compliance solutions.

"This transaction validates our thesis that MVB can create substantial shareholder value by building world-class Fintech solutions," said MVB President and CEO Larry F. Mazza in the press release.

Despite the sale, MVB will maintain a strategic partnership with Victor and Jack Henry, allowing the bank to continue providing embedded payment solutions to customers while participating in Victor’s future growth.

The transaction will provide MVB with greater flexibility to pursue balance sheet and capital management strategies, potentially including repositioning of available-for-sale securities, share repurchases, or other capital optimization initiatives.

MJC Partners served as financial advisor to MVB and Victor, with Squire Patton Boggs (US) LLP acting as legal advisor. Stinson LLP served as legal advisor to Jack Henry.

MVB Financial is the holding company for MVB Bank, providing financial services to clients in the Mid-Atlantic region. Jack Henry serves approximately 7,400 financial institutions with technology solutions and has maintained dividend payments for 36 consecutive years, with 21 years of consecutive dividend increases. According to InvestingPro, the company’s strong cash flows and robust financial metrics make it an interesting watch, with 10+ additional ProTips available to subscribers. Discover comprehensive analysis and valuation insights in Jack Henry’s Pro Research Report, part of InvestingPro’s coverage of 1,400+ US stocks.

In other recent news, Jack Henry & Associates reported its fourth-quarter earnings for fiscal year 2025, surpassing analysts’ expectations. The company achieved an earnings per share of $1.75, exceeding the forecasted $1.55, and reported revenue of $615.37 million, above the expected $601.33 million. In a strategic move, Jack Henry acquired Victor Technologies to enhance its capabilities in the Payments-as-a-Service market, allowing financial institutions to integrate payment services into non-bank brands. Additionally, Jack Henry expanded its long-standing partnership with MeridianLink to improve digital lending and account opening services for community banks and credit unions.

The company’s Board of Directors declared a quarterly cash dividend of $0.58 per share, payable on September 26, 2025, to stockholders of record as of September 5, 2025. DA Davidson lowered its price target for Jack Henry from $212 to $204, while maintaining a Buy rating, noting that the company’s fiscal fourth-quarter results were modestly above their forecasts. These recent developments highlight Jack Henry’s ongoing efforts to strengthen its market position and deliver value to its stakeholders.

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