Jack Henry & Associates Inc. (Nasdaq: JKHY) announced the acquisition of Victor Technologies, Inc., which is described as a cloud-native, API-first provider of innovative direct-to-core embedded payments solutions, from MVB Financial Corp. (Nasdaq: MVBF).
The acquisition expands Jack Henry’s capabilities in the Payments-as-a-Service (PaaS) market, in which FIs embed payment services into third-party, non-bank brands.
The addition of Victor, which reportedly processes billions in payments on a monthly basis, provides Jack Henry’s financial institution clients with capabilities to serve fintechs and commercial customers, boost deposits, and diversify revenue.
The PaaS market is set to grow from about $19.1 billion in 2025 to $43.9 billion in 2029 at a compound annual growth rate (CAGR) of 23.1%, according to the latest update from Research and Markets.
Founded back in 2021 by Jack Henry core client MVB Bank, Inc., Victor is said to be integrated with Jack Henry’s SilverLake core bank system and JHA PayCenter.
Jack Henry says it intends to further expand Victor’s capabilities to serve its Symitar® credit union and Treasury Management platform clients, and integrate with the cloud-native Jack Henry Platform.
Victor offers real-time payment processing and virtual ledgering functionality to help financial institutions ”serve fintechs and commercial customers across multiple payment types and vertical markets.”
Current capabilities include disbursements, receivables, cross-border, escrow, title, and e-commerce, along with support for virtual accounts as well as digital wallets.
Victor’s direct integration with Jack Henry’s banking core gives financial institutions greater control and visibility, enabling almost real-time reconciliation and lowering risk of overdrafts.
The solution also provides a single ”source of truth for money movement and compliance reporting.”
Terms of the transaction were not disclosed in the announcement.
Jack Henry expects the acquisition to be ”minimally dilutive to GAAP EPS for the remainder of fiscal 2026 and fiscal 2027 and be’come accretive in fiscal 2028.”
Victor offers banking tech solutions that intend to simplify direct Bank-Fintech partnerships.
Victor APIs help technology companies and corporations embed financial solutions within their product offerings.
Its platform tools assist banking institutions with managing fintech partnerships as well as compliance at scale.
As covered, Jack Henry is a financial technology company that aims to further strengthen connections between financial institutions and the people and businesses they aim to serve.
They are an S&P 500 company which claims it focuses on prioritizing openness, collaboration, and user centricity – offering banks and credit unions an ecosystem of internally developed capabilities along with the ability to integrate with fintech solutions.