PASADENA, Calif. -
The acquisition is expected to close by Dec. 31; the purchase price was not disclosed. The transaction primarily affects clients of Symitar, with both CUSOs specializing in offerings for credit unions running that companies solutions, but both CUSOs are also expanding their solutions for other providers, as well.
Both CUSOs cited highly "complementary" products and cultures in announcing the combination, with John Best, WRG's chief technology officer, describing the deal as a "peanut butter and chocolate" moment, a reference to the old Reese's Cup commercials. "We hope it will become the largest and most successful technology solution in the nation," said Best.
In separate interviews, both Best and Alan Brunner, eCU's chief operating officer and who will now assume a senior role with WRG, attributed the acquisition to the result of not just product offerings that mesh well, but to cultures and philosophies that were quite similar. Brunner noted the deal came about following initial talks because eCU was interested in exiting the home banking solution business.
"We aren't in competition as much as we are a complement to each other," added Rob Guilford, EVP-technology and delivery with Wescom Credit Union. "We have a lot of respect for eCU. This just made a lot of sense."
Best said clients of both CUSOs should see almost immediately a convergence of platform product offerings that will be consistent with what he described as WRG's philosophy of seamless integration. "We do not believe in a disjointed platform," said Best. "We have a history of integrating products, such as ACH with the opening of accounts or a rewards program tied to debit."
Credit unions will also see expansion of software development and consulting services, he said. eCU Technologies has offered consulting services to users of Symitar's solutions, especially on more efficiently deploying its Episys system, according to eCU's Brunner. The consulting services will fill a hole in WRG's line-up, as will eCU's uPost remote deposit product, which some WRG client CUs already deploy.
eCU's Brunner said the CUSO is excited about what the acquisition means, including the expanded investment in R&D.
Both CUSOs anticipate greater economies of scale, but not in personnel, with no layoffs planned as a result of the deal. WRG will retain eCU's Harrisburg, Penn.-based operations, adding the East Coast office to facilities it already operates in Florida and Colorado.
"Economies of scale and greater research and development are very important, but we can't say we were seeking those out," said Guilford. "We strive for technology innovation and we build this business by being leaders in best-of-breed products. Bulk and size are not our goal; helping credit unions is our goal."
With the move WRG has announced several personnel changes. Tim Dolan has been named president, replacing Kevin Sarber, who has been promoted to senior vice president of service delivery for Wescom Credit Union. Sarber also has joined WRG's board of directors.
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