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Jack Henry Acquires Victor Technologies: Enhancing PaaS Capabilities

In a significant move to bolster its position in the rapidly expanding Payments-as-a-Service (PaaS) sector, Jack Henry & Associates Inc.® (Nasdaq: JKHY) has announced the acquisition of Victor Technologies, Inc. This company specializes in innovative, cloud-native, and API-first solutions designed to facilitate embedded payments. The deal was made public on October 1, 2025, marking a new era for Jack Henry, especially as financial institutions increasingly seek efficient payment solutions.

The Roots of the Acquisition

Victor Technologies, founded in 2021 by MVB Bank, Inc., has made a name for itself by creating integrated and responsive payment systems capable of handling billions of dollars in transactions each month. With its sophisticated embedded payments platform, Victor enhances Jack Henry's existing solutions, enabling financial institutions to better serve fintech companies and commercial clients. The acquisition fits perfectly into Jack Henry's vision to empower banks and credit unions with modernized technology, allowing them to adapt and thrive in a competitive landscape.

Greg Adelson, CEO of Jack Henry, emphasized the importance of technological modernization. He stated, “This acquisition advances our technology modernization strategy, helping banks and credit unions compete through innovative, cloud-native solutions.” With the addition of Victor’s capabilities, Jack Henry clients will now be able to enrich their services, significantly grow their deposit bases, and diversify their revenue streams.

Market Growth and Strategic Timing

The PaaS market is projected to skyrocket from $19.1 billion in 2025 to an astonishing $43.9 billion by 2029, reflecting a compound annual growth rate (CAGR) of 23.1%. This rapid growth signifies a pivotal moment for Jack Henry, promoting its commitment to enhancing embedded payment solutions for non-bank brands.

Victor Technologies is already well-integrated with Jack Henry’s SilverLake core banking system and JHA PayCenter™, paving the way for a seamless transition. Moving forward, Jack Henry aims to extend Victor’s reach to its Symitar® credit union client base and Treasury Management platform. This integration is expected to deliver significant advantages to financial institutions, providing them with superior control and transparency over their payment systems.

Advancements in Payment Processing

Among Victor's offerings are robust functionalities such as real-time payment processing and virtual ledgering, which are essential for modern financial institutions serving both fintechs and commercial customers. The technology supports various payment types, including disbursements, receivables, and even cross-border transactions. Notably, Victor can facilitate payment solutions integrated with digital wallets and virtual accounts, resonating well with today's digitally inclined consumers.

The direct integration with Jack Henry’s core banking system implies that financial institutions will enjoy enhanced visibility and control over their operations, contributing to faster reconciliations and minimizing the risk of overdrafts.

Looking Ahead

Victor's President, Maf Sonko, shared his enthusiasm about joining forces with Jack Henry, aiming to expand their offerings and adapt to technological innovations such as stablecoin and AI-driven commerce. He noted the urgency for rapid innovation in this space, emphasizing that scaling technologies will be crucial.

Although specific financial terms of the acquisition have not been disclosed, Jack Henry anticipates that the deal will have a minimal impact on GAAP EPS during the remainder of fiscal year 2026 and fiscal 2027, while becoming accretive in fiscal 2028.

About the Companies

Victor Technologies, Inc. focuses on providing banking technology solutions that facilitate seamless partnerships between banks and fintech companies. By simplifying the compliance and partnership ecosystem through well-designed APIs, Victor is revolutionizing how financial services are offered today.

Jack Henry & Associates, Inc. has served the financial sector for nearly 50 years, providing vital technology solutions designed to enhance operational efficiency and support the evolving needs of clients. A member of the S&P 500, Jack Henry prioritizes innovation, collaboration, and a user-friendly approach to boost the financial health of their approximately 7,400 clients.

In summary, the acquisition of Victor Technologies positions Jack Henry at the forefront of the PaaS market, ensuring that their clients are well-equipped to meet the dynamic demands of the financial landscape.