Michigan-based CUSO CU Solutions Group has agreed to purchase a majority ownership stake of CU Wallet, a Los Angeles-based mobile-banking technology provider.
CUSG announced in a press release Tuesday that it will acquire 60% of CU Wallet for a five-year, $3 million working capital loan and a $3 million exchange of its stock with existing CU Wallet's class A shareholders. The deal is expected to close during the first quarter of 2017.
CU Wallet provides mobile technology platforms for more than 100 regional and community financial institutions.
"CU Solutions Group sees great synergy with the CU Wallet vision," Dave Adams, chief executive of CU Solutions Group, said in the release. "We are interested in offering credit unions an array of mobile lifestyle apps that include a shopping/payments app such as CU Wallet."
CU Solutions is based Livonia, Mich., and offers products and service in technology, marketing and performance to nearly 4,000 clients nationwide. The organization is majority-owned by the Michigan Credit Union League.
"Today's announcement represents a significant milestone in our company's history and our team is thrilled to work together with CU Solutions Group to deliver innovative mobile solutions for credit unions," said Paul Fiore, CU Wallet's CEO and founder.
