California-based CO-OP Financial Services has acquired payments processor TMG in a US $100m all-cash deal.
The credit union network had been a minority owner and has now bought up all the remaining shares from Iowa Credit Union League.
Todd Clark, CO-OP Financial Services president and chief executive, said the deal will lead to a combined revenue of US $500m.
CO-OP Financial Services has $376m in assets and serves about 3,500 credit unions, as well as about 60 million consumer account holders, and TMG serves 400 credit unions and processes transactions for six million cardholders across the USA and Canada.
“The acquisition of TMG and the evolution of our leadership team are designed to maximise benefits for the clients of both companies,” added Mr Clark.
“We are creating a new CO-OP that embraces technology and best-in-class service delivery to create a seamless, secure and personalised experience for our clients and their members, however they choose to interact with their credit union using a CO-OP product.”
The acquisition forms part of CO-OP Financial Services’ long-term strategy, which has also seen it invest $25m in technology infrastructure and product innovation in 2017.
“The combined forces of TMG and CO-OP provide credit unions with a single point of entry to the most innovative, tailored, cost-effective products and services as they prepare for a rapidly transforming payments landscape,” said Mr Clark.
“We will offer the market greater integration of the two company’s product lines and a simplified, predictive client experience. We will also leverage artificial intelligence, custom business intelligence, consultation and deeper security offerings that marry machine learning and human analysis to perfect authentication, reporting and anticipation of fraud.”
By acquiring TMG, CO-OP Financial Services is also changing its organisational structure, adding several executive management positions and making new appointments.
