ProfitStars Hungry for More Acquisitions
WASHINGTON, DC–ProfitStars, which has confederated a slate of acquisitions into a roster of payments, risk management and security tools and services for banks, plans to continue to grow through acquisitions, David Foss, the company’s president, told Bank Innovation Wednesday.
“We haven’t done one in two years,” Foss said of M&A at ProfitStars, a unit of Jack Henry & Associates.
ProfitStars has closed on 18 acquisitions since 2008. Its last purchase was of iPay Technologies in early 2010 for about $300 million. IPay now serves as a major component of ProfitStars’s payments business.
As a unit, ProfitStars now has a greater growth rate than Jack Henry’s published rate of 8% per annum, Foss said.
Foss delineated the company’s filtering criteria for any acquisition. In order for Jack Henry to pull the trigger on a deal, the target company must have:
- Solid technology;
- A business that is up and running;
- Provide a return to Jack Henry shareholders within one year; and
- Maintain a business culture that matches the culture at ProfitStars.
“We are big on culture,” Foss said.
