Jack Henry & Associates to Acquire Payment Technology Company Payrailz

Jack Henry & Associates (Jack Henry) announced that it has entered into a definitive agreement to acquire Payrailz, a payment technology company. The acquisition is expected to close on August 31, 2022. Terms of the deal were not disclosed.

Payrailz is a digital payments company offering advanced bill payment and money transfer solutions to banks and credit unions. With this acquisition, Jack Henry will add Payrailz's digital payments capabilities to its payments ecosystem.

The transaction will benefit the development of Jack Henry's next-generation payments technology strategy, which was designed to help banks and credit unions innovate faster while meeting the changing needs of consumers and commercial account holders.

Greg Adelson, President and COO of Jack Henry, said: "We are excited about the opportunity to add these next-generation solutions to our payments capabilities. Our company is engaged in technology modernization that is supporting banks and credit unions with innovative solutions that enable them to respond to business opportunities and challenges, and to improve the financial health of their accountholders. Considering the importance of modern digital and payments strategies to financial institutions, we plan to acquire Payrailz as a strategic addition to our payments ecosystem, which enables our clients to simplify the complexity of payments, modernize their existing payment channels, and remain at the center of their account holders' payment experiences."

Fran Duggan, CEO and founder of Payrailz said: "We are confident joining Jack Henry is in the best interest of our clients and our associates. As part of Jack Henry, we have the opportunity to leverage its financial strength and stability, extensive operational infrastructure, and industry, payments, and security expertise. Joining Jack Henry also  enables us to build on our market reputation and accelerate our vision of providing smarter payment experiences. This acquisition provides significant growth opportunities with frictionless access to Jack Henry's existing clients and offers our clients peace-of-mind that Jack Henry has a long-term commitment to investing in the Payrailz platform and shares our service culture and standards. We are sincerely excited to join one of the industry's most respected and successful fintechs."