Monett, Mo.-based Jack Henry & Associates announced this morning it has agreed to acquire iPay Technologies, the largest independent electronic bill pay provider in the U.S., from venture firms Spectrum Equity Investors and Bain Capital Ventures, for $300 million in cash.
Elizabethtown, Ky.-based iPay, founded in 2001, is one of the most popular e-bill service providers for credit unions and community banks. Through strategic partnerships with more than 50 providers of information processing and online banking solutions, iPay's turnkey online bill pay services and technology are supporting more than 3,600 credit unions and banks.
IPay partners with companies like Jack Henry & Associates to provide online bill payment solutions to financial institutions and supports those institutions' retail and small business customers with a highly configurable electronic payments platform.
“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,” said Jack Primm, CEO of Jack Henry. “This is a key acquisition that supports our expansion in the electronic payments industry and further strengthens our payments offering."
IPay's retail bill payment services include person-to-person payments, account-to-account interbank transfers, electronic bill presentment, the ability to pay bills from multiple accounts, expedited payments, payment tracking, automatic text alerts and payment reminders. Its small business bill pay suite includes functionality that permits users to delegate and manage payment tasks with strict entitlement controls, enforce dual account signature requirements to ensure established payment approvals, create customized electronic invoices and manage receivables.