Filing Flows › Jack Henry & Associates (JKHY) › Takeover & LBO
Is Jack Henry & Associates (JKHY) a takeover target?
A leveraged buyout at today's price plus 30% ($209.74 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $123.95 a share (−23% against today's $161.34). Historically 1.8% of companies with its figures were bought within a year (0.36× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $209.74 | today's $161.34 plus 30% |
| × shares | 70.3 million | |
| = Equity value | $14.7B | |
| + Debt refinanced | $40.0M | |
| − Cash | $25.4M | |
| = Enterprise value | $14.8B | 21.0× EBITDA of $701M |
| Fees | $295M | 2% of the price |
| New debt | $3.9B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $11.2B | 74% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.8B | $754M | $295M | $253M | $3.6B |
| Year 2 | $3.0B | $802M | $276M | $302M | $3.3B |
| Year 3 | $3.1B | $844M | $252M | $350M | $3.0B |
| Year 4 | $3.3B | $879M | $226M | $396M | $2.6B |
| Year 5 | $3.4B | $905M | $195M | $441M | $2.1B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 16.2× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $14.7B | |
| − Debt left | $2.1B | |
| = Buyer's equity | $12.5B | |
| Money multiple | 1.12× | on $11.2B put in |
| Buyer's yearly return (IRR) | 2.3% |
Price against return
What the buyer makes at other premiums over today's $161.34; the IRR reaches 20% at $123.95 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $177.47 | 7.2% |
| 20% | $193.61 | 4.6% |
| 30% | $209.74 | 2.3% |
| 40% | $225.88 | 0.3% |
| 50% | $242.01 | −1.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.6B | |
| EBITDA, last 12 months | $701M | 26.9% of revenue |
| Depreciation and amortization | $42.9M | |
| Capital spending | $85.2M | |
| Debt | $40.0M | |
| Cash | $25.4M | |
| Share price | $161.34 | on Oct 30, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 7.5% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 23% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Jack Henry & Associates would cost about $209.74 a share, $14.7B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $180.70 | $12.7B |
| Median | 30% | $209.74 | $14.7B |
| High end (a quarter paid more) | 31% | $211.36 | $14.9B |
The odds, from history
Historically 1.8% of companies with its figures were bought within a year (0.36× the average). Its figures put it in decile 1 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Jack Henry & Associates' latest quarter
Jack Henry & Associates, Q1 FY27: revenue $702M (+9% year over year), operating margin 29.5%, net earnings $160M, operating cash flow $161M. The chart follows the revenue to costs, profit and cash.
Questions
Is Jack Henry & Associates being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Jack Henry & Associates?
A leveraged buyout at today's price plus 30% ($209.74 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $123.95 a share (−23% against today's $161.34).
What would a takeover of Jack Henry & Associates cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Jack Henry & Associates would cost about $209.74 a share, $14.7B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.