Live Oak Ventures Exits Payrailz Continuing Its Investment Momentum
Live Oak Ventures has exited its investment in Payrailz, LLC, a digital payments platform acquired by Jack Henry & Associates.
Sentiment and the balance of points
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Rhea-AI Summary
Live Oak Ventures has exited its investment in Payrailz, LLC, a digital payments platform acquired by Jack Henry & Associates. The expected pre-tax gain from this exit is approximately $28 million. This marks Live Oak's third investment yielding over 9x returns. The company has previously realized substantial gains from other investments, totaling $121 million in Finxact and $61 million in Greenlight Financial Technology. Live Oak Ventures holds investments in 11 companies with an estimated total value of $150 million as of June 30, 2022.
Positive
- Anticipated pre-tax gain of approximately $28 million from Payrailz exit.
- Third investment yielding over 9x returns.
- Realized $121 million gain from Finxact exit earlier this year.
- $61 million in cash and noncash gains from Greenlight Financial Technology.
Negative
- None.
Details
News Market Reaction – LOB
The recorded move for LOB in the trading session of this news was -0.15%.
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WILMINGTON, N.C., Sept. 06, 2022 (GLOBE NEWSWIRE) -- Live Oak Ventures has exited its investment in Payrailz, LLC (Payrailz) a digital payments platform, recently acquired by Jack Henry & Associates, Inc. (Jack Henry). Live Oak anticipates an estimated pre-tax gain of approximately
“This is the third investment by Live Oak that has had a greater than 9x return. We are proud of the success we are seeing in our investment strategy – partnering with industry veterans to address challenges in banking, and particularly in small business banking,” said Stephanie Mann, Live Oak’s Chief Strategy Officer. “Fran Duggan and Paul Franko, Payrailz founders, have modernized payment solutions for banking and we look forward to continuing on our product roadmap as they join Jack Henry.”
Live Oak Bank has been an early adopter of Payrailz’ bill pay products, and other payments technologies within its small business checking product. Live Oak Ventures realized a
About Live Oak Ventures
Live Oak Ventures, a wholly owned subsidiary of Live Oak Bancshares (NASDAQ: LOB), is a fintech-focused company that aims to bring innovation, efficiency, and excellence to the forefront of the banking industry. By investing in companies that accelerate the delivery of open digital solutions to the market, Live Oak Ventures intends to change the landscape of financial services.
Contact:
Claire Parker, SVP of Corporate Communications
910.597.1592
claire.parker@liveoak.bank
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