MONETT, Mo., and CHICAGO -- Jack Henry & Associates, Inc. (Nasdaq: JKHY), a provider of integrated computer systems and a transaction processor for financial institutions, has purchased National Bancorp Data Services, LLC (NBDS), an item capture processor. The terms of the cash transaction were not disclosed.
According to a news release, NBDS provides item capture and check imaging services for 14 banks in Illinois, Wisconsin and Indiana. The company generated approximately $1.5 million in revenues in 2002.
In a news release, Jack Prim, president of JKHY, said that proximity of item capture services can be a factor in winning new outsourcing contracts because of the time-sensitive nature of item capture. "By having item capture services in this area, we are enhancing competitive opportunities for us in the region, and solidifying our relationship with the NBDS banks who are currently being processed by one of our data processing locations," he said.
NBDS will continue to operate in its current facilities in Streamwood, Ill., with 18 employees.
Kevin D. Williams, JKHY's chief financial officer, said in the release that the acquisition is expected to be slightly accretive to earnings in 2003. "In a broader context, we also expect it to contribute to an expansion of data processing revenue in our existing data centers," he said.
