Co-op Financial Services on March 15 signed a nonbinding letter of intent to purchase the Share System debit and ATM processing network from Members United Corporate Federal Credit Union. Terms were not disclosed.
Share System, which is based in Indianapolis, offers processing to 70 credit unions, including 69 in Indiana and one in Michigan, that together deploy 100 ATMs, Victor A. Vrigian Jr., Co-op vice president and chief marketing officer, tells PaymentsSource.
Share System is a gateway to major networks. It contracts with First Data Corp., which provides the ATM and debit card processing, Vrigian says.
Members United, a wholesale credit union with 2,300 credit-union members nationwide that is based in Warrenville, Ill., offered the Share System service for 10 years, Vrigian says. The company decided to sell the business because of the small number clients it has and growing competition.
“With only 70 clients, we decided not to invest in Share System,” Vrigian says.
Joseph P. Herbst, Members United CEO, said in a statement the company selected a credit-union owned buyer that would provide seamless integration for members.
If the deal closes, it would extend Co-op Financial’s Midwest presence. Co-op’s membership includes 3,000 credit unions and 28,000 surcharge-free ATMs, Stan Hollen, Co-op Financial Services CEO and president, said in a statement
Both parties expect to sign a final agreement during the second quarter.