ALBANY, N.Y./RANCHO CUCAMONGA, Calif.—The New York Credit Union Association has signed a letter of intent to sell its subsidiary, Covera Solutions, to CO-OP Financial Services.
Covera currently provides 248 credit unions and their members with credit, debit, ATM and prepaid cards solutions.
“If finalized, this purchase would be a win for credit unions, the Association and CO-OP,” said NYCUA President/CEO William J. Mellin in a release. “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 companies expect to complete the purchase by the end of the first quarter.
NYCUA and the state’s credit unions have a long-standing partnership with CO-OP, and many of the state’s credit unions already belong to the CO-OP ATM network, with 30,000 surcharge-free ATMs available nationwide to members of participating credit unions, the league explained.
“Covera is a proven, valuable asset to the credit union system, one that is a key source of card solutions to credit unions,” said Stan Hollen, president/CEO, CO-OP Financial Services. “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.”