Tuesday, November 07, 2023
PSCU and Co-op Solutions (“Co-op”), two leading credit union service organizations (CUSOs) and financial technology solutions providers, today announced entering into an agreement to combine. Together, the companies will be better positioned to provide credit unions with innovative technology, unparalleled services, increased scale and differentiated value, fostering long-term success and sustainability for the credit union movement.
Charles E. (“Chuck”) Fagan, currently PSCU’s president and CEO, will be named as CEO of the new combined organization.
“This is a transformative opportunity for both PSCU and Co-op,” said Fagan. “Our member-owned companies have been respected industry assets for more than 40 years, and now is the right time for this combination, which we believe will create the premier fintech solutions provider for credit unions and make our combined organization an even stronger resource for the credit union ecosystem. We are excited to bring together our talented employees, complementary solutions, key partnerships and extensive client relationships – all under our shared commitment to the ‘people helping people’ credit union philosophy – to fuel growth and accelerate innovation for credit unions.”
PSCU and Co-op will continue to operate as two independent companies until the close of the transaction, which is expected to be completed by the end of December 2023 following the successful vote of both organizations’ Owner/shareholder bases, as well as other customary closing conditions. Following the close of the transaction, PSCU and Co-op will begin operational integration under a holding company led by a combined board and executive management team, with headquarters in St. Petersburg, Fla.
“The speed of change continues to accelerate, along with the need to deliver more complex technology and solutions for credit unions and their members,” said Dean Michaels, president and CEO of Co-op Solutions. “We believe this combination will offer an unprecedented opportunity to meet the demands of the modern credit union member, enable agile technology development and provide the scale to help credit unions compete and win in the financial services market. Co-op and PSCU have adeptly responded to market needs by delivering the solutions, services, support and flexible integration points to help credit unions succeed. This momentum, in concert with the combination, is an incredible opportunity for Co-op and PSCU, as well as for our employees, credit unions and the industry as a whole.”
With a full portfolio of solutions from PSCU and Co-op, the combined company will be positioned to more effectively serve the evolving needs of credit unions and their members, while ensuring long-term financial stability. Together, the companies will provide:
“The decision to combine with Co-op comes at a time when the payments landscape continues to see rapid evolution, with innovation and technology reshaping the needs of our industry and financial institutions,” said Frank Weidner, chair of the PSCU Board and president and CEO of Wings Financial Credit Union. “With their collective history and expertise, PSCU and Co-op have an unparalleled understanding of the credit union space. We believe that we are stronger together, and we look forward to the new opportunities for success that this combination will provide for credit unions.”
The leadership team of the new combined organization will be announced when the transaction is complete, while the combined Board of Directors will comprise credit union CEO representation from both current Boards, including nine members from the current PSCU Board and four members from the current Co-op Board.
“Credit union growth and member experience are the shared central mission of PSCU and Co-op,” said Joan Opp, chair of the Co-op Board and president and CEO of Stanford Federal Credit Union. “Our combined Board of credit union CEOs reaffirms our commitment to credit unions, and credit union ownership of the key technologies and services needed to compete in the broader financial services space, ensuring that credit unions succeed and thrive. While both PSCU and Co-op are already leaders in the credit union space, together, we’re confident that this combination will help more credit unions sustain growth and meet the evolving needs of their members.”
In addition to Weidner, the members of the current PSCU Board who will serve as members of the combined company’s Board are:
The members of the current Co-op Board who will serve as members of the combined company’s Board are:
The following PSCU Associate Directors will remain in the same roles as part of the new combined Board:
Opp will serve in an advisory capacity to the new combined Board for a period of one year. As previously planned, Cathy Pace, president and CEO of Allegacy Federal Credit Union (N.C.) and Jeff March, president and CEO of Citadel Federal Credit Union (Pa.) will retire from the PSCU Board at the end of this year.
PSCU, the nation’s premier payments CUSO and an integrated financial technology solutions provider, supports the success of more than 2,400 financial institutions and processes more than eight billion transactions annually. Committed to service excellence and focused on continuous innovation, PSCU’s payment processing, fraud and risk management, data and analytics, digital banking, strategic consulting and real-time payments platforms, along with 24/7/365-member support via its contact centers, help deliver personalized, connected experiences. The origin of PSCU’s model is collaboration and scale, and the company has leveraged its influence on behalf of credit unions and their members for more than 45 years. Today, PSCU provides an end-to-end, competitive advantage that enables credit unions to securely grow and meet evolving consumer demands. For more information, visit www.pscu.com.
About Co-op Solutions
Co-op Solutions is a credit union-owned financial technology platform built using an industry-leading ecosystem, and whose mission is to connect credit unions to the technology, strategic partnership and scale they need to best serve their members and grow now and into the future. Co-op Solutions partners with credit unions to unlock their potential so they can compete; does the hard work of innovation, creating a one-stop opportunity to help credit unions grow; and offers knowledge and expertise in a world where everything must be integrated. Founded in 1981, Co-op Solutions services 2,650 credit union clients, processes eight billion transactions annually, and manages a nationwide ATM network of more than 30,000 and a 5,700-location shared branch network. For more information, visit www.coop.org.
Note that this communication contains certain forward-looking statements. The forward-looking statements contained in this communication are based on current expectations and assumptions of PSCU and Co-op Solutions that are subject to risks and uncertainties, which may cause actual results to differ materially from the forward-looking statements. Third parties, members and employees are cautioned not to unduly rely on these forward-looking statements. Each of PSCU and Co-op Solutions expressly disclaims any intent or obligation to update or revise these forward-looking statements.