Transcript
Introduction
Matt
This is Matt Reustle, and today we are breaking down Jack Henry. Now if you're not familiar with Jack Henry, Mark Leonard and Constellation Software once referred to this business as their gold standard. It's a true best-in-class operator within the vertical market software space. And to break down Jack Henry, I'm joined by Bob Desmond, Portfolio Manager and Head of Claremont Global.
Jack Henry has a rich history and there are so many things to study. On the surface, they sell a full operating system software that powers small and mid-sized banks. But this business was not born out of Silicon Valley like many great software businesses have been. They were born in Monett, Missouri, and they continue to operate there today.
And they've succeeded despite massive consolidation within that customer set: the small and mid-sized banks. We get into some of the unique dynamics. Like many great vertical market software businesses, M&A has been a piece of the puzzle. But Jack Henry puts a very deliberate focus on organic growth, particularly in their core product.