ONTARIO, Calif. - Encore Electronic Services Cooperative Inc. and Co-Op Network are expected to merge, according to a news release issued March 28.
The agreement, which allows Encore members to become Co-Op shareholders, will be finalized in coming months.
Encore, a credit union service organization based in Falls Church, Va., offers EFT/ATM services, shared branching, and merchant and card services to its members. The cooperative, owned by 124 member credit unions, became a Co-Op Network member/shareholder in April 2003.
"We aligned with Co-Op Network because we wanted to increase our organizational and financial strength," Encore president and chief executive Tom Reed said.
This agreement, if it goes through, will mark the Co-Op Network's seventh merger in the last decade. Co-Op Network has grown from 329 California and Nevada member credit unions, with 1,400 ATMs, to nearly 2,000 member credit unions, with access to 25,000 ATMs.
"Our partnership with Encore is one of our largest to date, in terms of transaction volume, with Encore processing almost 10 million transactions per month," Co-Op Network chief executive Stan Hollen said.
Post merger, Encore is expected to operate as a division of Co-Op Network. The division will focus on the continuity of service for EFT and shared branch processing to current member credit unions and provide leadership on merchant and card services.
