The New York Credit Union Association has signed a letter of intent with CO-OP Financial Services to sell the CUSO its payment subsidiary, Covera Solutions Inc.
Covera provides 248 credit unions with credit, debit, ATM and prepaid card services.
"If finalized, this purchase would be a win for credit unions, the association and CO-OP," NYCUA President/CEO William Mellin, said. "Most importantly, Covera credit unions would benefit from an expanded relationship with CO-OP, an innovative industry leader with an extraordinary commitment to credit unions."
The two parties expect to close the sale by the end of March after CO-OP finishes with the due diligence process surrounding the deal, according to CO-OP Financial Services President/CEO Stan Hollen.
Hollen said the CUSO already had good representation with Covera and the state of New York's credit unions, particularly the larger ones.
Mellin said the association was considering the move for some time and decided to move forward to give member credit unions the best advantage in keeping up with a rapidly changing field.
"Covera is a proven, valuable asset to the credit union system, one that is a key source of card solutions to credit unions," Hollen said. "We have a transaction processing relationship with Covera that goes back many years, and this will strengthen the ability of the association and CO-OP to provide support superior to any other credit union service organization."
Both Mellin and Hollen said the sale will make it easier for Covera's credit union clients to communicate with CO-OP and gain access to the Rancho Cucamonga, Calif.-based CUSO's call center services that were not offered by Covera.
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