HKW has acquired Houston-based John M. Floyd & Associates Inc, a provider of software and consulting solutions designed to optimize overdraft programs for regional/community banks and credit unions. No financial terms were disclosed. Taft Stettinius & Hollister LLP served as legal counsel to HKW while Foley & Lardner LLP did likewise for JMFA.
INDIANAPOLIS, November 18, 2019 – HKW, a middle-market private equity firm focused on growth-oriented companies, today announced the acquisition of John M. Floyd & Associates, Inc. (“JMFA” or the “Company”), a provider of software and consulting solutions designed to optimize overdraft programs for regional/community banks and credit unions. Financial terms of the transaction were not 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 subsector.
“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,” said 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.
HKW is a private equity firm investing in growth-oriented companies with talented management teams in the US and Canada. HKW targets small to mid-size companies in the Business Services and Health & Wellness sectors. Since 1982, HKW has sponsored 61 platform transactions of lower middle-market companies throughout North America, as well as 66 add-on acquisitions. For more information on HKW, please visit hkwinc.com.