Covington Associates Advises on Sale of ATM Management Technology Maker
e-ClassicSystems to Jack Henry & Associates
BOSTON, May 2, 2004 – Covington Associates announced today that it acted as advisor to e-ClassicSystems Inc. of Norwood, Mass., maker of the world’s leading ATM channel management system, in its sale to Jack Henry & Associates, Inc. (Nasdaq: JKHY), which provides integrated computer systems and processes ATM and debit card transactions for banks and credit unions.
The transaction will allow e-Classic, privately held before its sale, to realize its full potential as a developer and manufacturer of software to help financial institutions manage the operations and accounting of their automated teller machine (ATM) networks, said Eric Shealy, a managing director at Covington who advised e-Classic. The firm employs 16 people in Norwood and will continue to operate as a wholly owned subsidiary of Jack Henry, which is based in Monett, Mo. Further details of the transaction were not disclosed.
“This is a textbook case of a growing company with best-of-breed technology that needed to partner with a larger company to make its products and services available to a broader customer base,” Shealy said of e-Classic. The company’s flagship product, ATM Manager Pro, was launched in May 2000 and is now used to manage more than 130,000 ATMs. The product suite addresses all facets of operation including asset tracking, profit and loss reporting and cash management.
The e-Classic sale is the third transaction announced in 2004 by Covington Associates, as the mergers and acquisition market continues to recover. “At Covington, we see increased interest in strategic acquisitions by publicly-owned technology companies, which are in a stronger position to buy following the rally in technology stocks over the past year,” Shealy said.
About Covington Associates
Covington Associates is a specialty investment banking firm offering financial advisory services in the areas of mergers, acquisitions and capital raising. For more than a decade, Covington Associates’ senior advisors have been providing a superior level of service to middle-market companies in the technology, healthcare and industrial/consumer sectors. Covington Associates has completed transactions ranging in value from $5 million to more than $1 billion for both publicly-traded and privately-held companies across the U.S. and abroad. For more information, visit the company’s web site at www.covingtonassociates.com.