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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 18, 2002
JACK HENRY & ASSOCIATES, INC.
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(Exact name of Registrant as specified in its Charter)
Delaware 0-14112 43-1128385
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(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
663 Highway 60, P.O. Box 807, Monett, MO 65708
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(Address of principal executive offices)(zip code)
Registrant's telephone number, including area code: (417) 235-6652
Item 5. Other Events.
On November 18, 2002, Jack Henry & Associates, Inc. ("Jack Henry")
issued a press release (a copy of which is attached to this report)
announcing the acquisition of CU Solutions, Inc.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
99.1 Press release dated November 18, 2002.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: November 19, 2002
JACK HENRY & ASSOCIATES, INC.
(Registrant)
By: /s/ Kevin D. Williams
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Kevin D. Williams
Chief Financial Officer
Exhibit 99.1
Company: Jack Henry & Associates, Inc. Analyst Contact: Kevin D. Williams
663 Highway 60, P.O. Box 807 Chief Financial Officer
Monett, MO 65708 (417) 235-6652
IR Contact: Becky Pendleton Reid
The Cereghino Group
(206) 762-0993
FOR IMMEDIATE RELEASE
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JACK HENRY & ASSOCIATES ACQUIRES CU SOLUTIONS, INC,
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EXPANDS DATA PROCESSING SOLUTIONS FOR CREDIT UNION MARKET
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Monett, MO and Fort Mill, SC -- November 18, 2002. Jack Henry & Associates
(Nasdaq: JKHY), a leading provider of technology solutions for financial
institutions, today announced it has purchased CU Solutions, Inc. The
terms of the transaction were not disclosed. CU Solutions is a provider
of in-house data processing solutions for smaller credit unions, primarily
those with assets less than $20 million. Of the 9,782 credit unions in the
National Credit Union Administration 2002 Directory, 6,545 institutions, or
67%, had assets less than $20 million.
Headquartered near Charlotte, North Carolina, privately held CU Solutions
is a profitable company serving more than 140 credit unions. Its flagship
product, Cruise/SQL, is a powerful and flexible P/C based software solution
that is scalable, open and user friendly. Cruise/SQL data storage and data
access methods are built around the SQL Server database with the ease of use
of the "point and click" Windows interface. Founded in 1982, CU Solutions
generated revenues of approximately $2 million, of which approximately 40%
was recurring revenue, in its year ended December 31, 2001.
"This acquisition adds an extremely robust and affordable core solution to
our suite of offerings. It fills a void in our product offerings for the
smaller credit unions which allows us the ability to effectively market to
any size credit union," said Michael E. Henry, Chairman and CEO of JKHY.
"In addition, acquiring CU Solutions brings significant intellectual
capital that is highly sophisticated for a firm of its size. CU Solutions'
functionality, connectivity, system tools and front-end implementation
processes are superb, and our existing personnel are excited about sharing
ideas and expertise."
CU Solutions currently employs 20 individuals in the greater Charlotte area.
Jack Henry and Associates has an office in Charlotte where approximately 100
employees are currently located. "We will begin immediately to integrate
the CU Solutions personnel into Jack Henry's nationwide internal network.
CU Solutions will continue to operate as a wholly-owned subsidiary as part
of the JKHY's credit union segment," said Jack Prim, JKHY's Chief Operating
Officer. "We expect to retain all of the CU Solutions team, as well as
consolidate our Charlotte area offices in the near future."
"Jack Henry & Associates has become one of the most well-respected systems
integrators in the financial services sector, and we are fortunate to be
joining their team," said Kai Ravnborg, President of CU Solutions. "We look
forward to leveraging their strong balance sheet, nationwide sales force and
sophisticated product set to expand our revenue and earnings growth
potential significantly."
"The superior level of product and service quality we've identified with CU
Solutions, coupled with the fact that it generates net margins in line with
our own, warranted a premium valuation," said Kevin D. Williams, Chief
Financial Officer at JKHY. "We are confident this transaction will be
slightly accretive to earnings this fiscal year and that it will continue
to expand and increase benefits to our shareholders and customers in the
future."
In 1998, Jack Henry entered the credit union segment with its acquisition
of The Peerless Group, whose Conductor credit union product was designed for
the mid-sized market. In 2000, the company acquired Symitar and its Episys
core solution for credit unions. Episys has gained favor among larger
credit unions. At the time of the Symitar acquisition, the company also
made the decision to market all of its credit union products under the
Symitar brand.
Jack Henry & Associates, Inc. provides integrated computer systems and
processes ATM and debit card transactions for banks and credit unions. Jack
Henry markets and supports its systems throughout the United States and has
over 2,800 customers nationwide. For additional information on Jack Henry,
visit the company's web site at www.jackhenry.com. CU Solutions, Inc. home
page can be found at www.cusolutions.com.
The company will host a conference call on Monday, November 18, 2002 at
10:30 a.m. Central Standard Time (11:30 a.m. Eastern) to discuss this news
release. To access the call, dial in to (612) 288-0329 between 10:20 and
10:30 a.m. CST to listen live. Also a replay is available for one week
thereafter at (320)-365-3844, access code 661114. This will also be
available at www.jackhenry.com.
Statements made in this news release that are not historical facts are
forward-looking information. Actual results may differ materially from
those projected in any forward-looking information. Specifically, there
are a number of important factors that could cause actual results to differ
materially from those anticipated by any forward-looking information.
Additional information on these and other factors, which could affect the
Company's financial results, are included in its Securities and Exchange
Commission (SEC) filings on Form 10-K, and these statements should be
reviewed by potential investors. Finally, there may be other factors not
mentioned above or included in the Company's SEC filings that may cause
actual results to differ materially from any forward-looking information.
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