There’s a lot of companies went private equity in the last few years. And I think we’re going to start seeing a time when we’re going to start spinning back out. And historically, I think they paid pretty high premiums. It’s going to be interesting to see what happens in the markets, but our disciplined approach to how we do things isn’t going to change.
Brian Miller: And just to add to Lynn’s comment about leverage and our comfort level, we’ve never been highly leveraged and don’t see a scenario where we really would be given the predictability and the strength of our cash flow, especially around our recurring revenues. When we did the NIC acquisition, we were, I think, around or maybe above 3x leverage and certainly very comfortable there. Our lenders are very comfortable there. And as we said, we’re focused on deleveraging, especially as interest rates rose and have done that very rapidly. But I think we have a lot of capacity as well. But within that band up to the kind of 3, 3.5 times, where we’re very comfortable.
David Unger: Appreciate that. Thank you gentlemen.
Operator: Thank you for your question. [Operator Instructions] Our next question is from the line of Pete Heckmann with D.A. Davidson. Your line is live.
Pete Heckmann: Thank you. Good morning. Just wanted to see if you had any preliminary thoughts on the potential for the Federal Reserve to cut debit interchange and whether based on the convenience fee model that NIC had, whether a lower interchange might be a benefit to margins?
Lynn Moore: I think the short answer is no, I don’t have any preliminary thoughts on it. Obviously, we watch all these types of things that are going on in the markets, particularly as we think about our long-term plans and views. I’m certainly not in a position to think one way or the other of where — what anybody in Washington is going to do a little on the Fed. But — so I’d say right now, I don’t have any real comment on that.
Pete Heckmann: Okay. And then just a housekeeping item, Brian. Were there any single deals above, let’s say, $10 million in TCV in the quarter?
Brian Miller: I don’t think we had anything above $10 million in contract value. Our biggest SaaS deal was around $5.5 million in contract value. That was the Minnesota Parks deal. And our biggest license deal was under $5 million total contract value, though it has a lot of options that could drive that significantly higher. But the booked amount was less than $5 million. So no, no — nothing in that really large size this quarter. A lot of good midsized volume of kind of bread-and-butter deals.
Pete Heckmann: Yeah, yeah. Just a lot of singles and doubles okay, I appreciate it. Thank you.
Operator: Thank you for your call and your question. Our next question is from the line of Alexei Gogolev with JPMorgan. Your line is live.
Helen Smith: This is Helen Smith on for Alexei Gogolev from JPMorgan. Thank you for taking my question. So my first question revolves around your private data centers. At your Investor Day, you talked at length that one data center will be closed in 2024 and the other in 2025. Do you have any updates on that front?
Lynn Moore: Yeah, I’d say right now we’re on track for what we outlined. We expect our Dallas Center to shut down sort of middle of 2024. And yes, we’re still on track for evacuating the other one by the end of 2025.
Helen Smith: Great. Thank you so much. And my second question revolves around security. There have been some pretty high-level security breaches recently out like Clorox and GM, Caesars. I was wondering if this has changed the way that you’re working with your customers or if your customers have brought forward any sort of concerns.
