HKW, a middle-market private equity firm focused on growth-oriented companies, has acquired John M Floyd & Associates (JMFA), a provider of software and consulting solutions designed to optimise overdraft programs for regional/community banks and credit unions.
Financial terms of the transaction have not been disclosed.
Headquartered in Houston, Texas, JMFA serves more than 350 regional/community bank and credit union customers with its core overdraft privilege program, and also provides vendor contract negotiation services. The Company uses proprietary software and ongoing consulting to confirm compliance and identify areas of improvement with client overdraft programs. JMFA aligns with HKW’s Business Services sector focus, notably within the Tech-Enabled Business Services sub-sector.
“JMFA’s talented management team has built a profitable, recession-resistant business in a market with increasing demand for its services and meaningful potential for growth,” says Luke Phenicie, Lead Transaction Partner at HKW. “We believe our partnership with JMFA can result in both organic and strategic growth opportunities resulting from operational improvements, increased service offerings, and expanded geographic reach.”
“JMFA has a long track record of successfully assisting community/regional banks and credit unions with their overdraft programs on an ongoing basis. This is important because overdraft programs are difficult for these customers to manage in terms of compliance and processes,” added Chris Eline, a Principal at HKW. “We look forward to helping JMFA continue to develop their software and services offering, as well as push to reach more customers throughout the United States.”
Taft Stettinius & Hollister LLP (“Taft”) served as legal counsel to HKW. Foley & Lardner LLP served as legal counsel to JMFA. GulfStar Group provided transaction advisory to JMFA.
