The New York Credit Union Association (NYCUA) announced that it has signed a letter of intent to sell its card services subsidiary Covera Solutions Inc., to CO-OP Financial Services.
Covera currently provides 248 credit unions and their members with credit, debit, ATM and prepaid cards solutions.
The transaction is expected to close by the end of the first quarter.
"If finalized, this purchase would be a win for credit unions, the Association and CO-OP," said NYCUA President and CEO William J. Mellin in a statement. "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 parties stated that NYCUA and the state's credit unions have a "long-standing partnership" with CO-OP, and that 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.
"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 and CEO of 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."
