The Iowa Credit Union League has sold its majority interest in its Clive-based payments processing company, TMG, to CO-OP Financial Services. As part of the $100 million transaction, CO-OP Financial Services has agreed to keep TMG’s 550-person workforce in place in Iowa for the next seven years. 

CO-OP Financial Services, which is based in Rancho Cucamonga, Calif., is the largest credit union-owned electronic funds transfer network in the world, processing 3.2 billion such transfers and shared branch transactions annually for its 3,500 credit union members. The company had been a minority owner of TMG for the past five years, and with the transaction acquired all of the remaining shares of TMG from the Iowa Credit Union League. 

With the acquisition of TMG, CO-OP becomes a fully integrated, comprehensive payments services company, realizing the vision of the original partnership formed by the two companies in January 2012, the company said in a release.  

“The combined forces of TMG and CO-OP provide credit unions with a single point of entry to the most innovative, tailored, cost-effective products and services as they prepare for a rapidly transforming payments landscape,” said Todd Clark, CEO of CO-OP Financial Services. 

“We will offer the market greater integration of the two companies’ product lines and a simplified, predictive client experience,” Clark said. “We will also leverage artificial intelligence, custom business intelligence, consultation and deeper security offerings that marry machine learning and human analysis to perfect authentication, reporting and anticipation of fraud.”

In 2016, TMG processed 368 million credit and debit card transactions representing $19 billion in consumer spending. TMG was one of four operating companies managed through the Iowa Credit Union League’s wholly owned holding company, Affiliates Management Co. AMC’s remaining operating companies — Coopera, PolicyWorks and TMG Financial Services — are not affected by this transaction, the organization said. 

“This transaction comes from a position of success of TMG,” said Brent Helin, ICUL board chair and CEO of Des Moines Metro Credit Union. “The ICUL board of directors believes this
ownership transition will benefit clients, members, owners and employees of all companies involved.”

Shazia Manus, formerly CEO of TMG, will report to Clark and has been named chief product and strategy officer. The company also announced several other executive hires and promotions.  Among them: 

  • Nick Calcanes, previously with Fiserv, has been hired as chief information officer, in a move to extend that position’s role to provide more technology strategy and integration between CO-OP’s internal infrastructure and product offerings. 
  • Kari Wilfong, formerly chief financial officer and executive vice president, has been promoted to CFO and chief administrative officer. 
  • Samantha Paxson joins the executive management team and has been named chief experience and marketing officer.
  • Jim Hanisch, formerly executive vice president of network operations and corporate development, has been appointed chief operating officer. 

The acquisition complements CO-OP’s $25 million investment in technology infrastructure and product innovation made earlier this year, the company said. That investment emphasizes improving the industry’s ability to fight fraud while advancing a positive, sophisticated consumer payment experience to meet the rapid digitization of payments.