St. Pete’s PSCU to merge with California company

St. Pete-based credit union service provider PSCU will merge with a California-based fintech firm, creating a new combined group. 

Through the merger with Co-op Solutions, the new combined organization will have over 5,000 employees, according to a Tuesday announcement. 

Together, the group will have $1.3 billion in annual revenue. 

“Our member-owned companies have been respected industry assets for more than 40 years, and now is the right time for this combination, which we believe will create the premier fintech solutions provider,” PSCU President and CEO Charles “Chuck” Fagan said in a prepared statement. “We are excited to bring together our talented employees, complementary solutions, key partnerships and extensive client relationships – all under our shared commitment to the ‘people helping people’ credit union philosophy – to fuel growth and accelerate innovation for credit unions.” 

Fagan will serve as CEO of the new combined organization. 

PSCU and Co-op will continue to operate as two independent companies until the close of the transaction.

The executives expect the deal to close by the end of December, pending votes from both organizations’ owners and shareholders. 

Following the needed approvals, the two businesses will begin operational integration under a holding company led by a combined board and executive management team at the St. Pete headquarters, located at 560 Carillon Parkway. 

“The decision to combine with Co-op comes at a time when the payments landscape continues to see rapid evolution, with innovation and technology reshaping the needs of our industry and financial institutions,” PSCU Chairman Frank Weidner said in the statement. 

The merger comes after PSCU has made recent significant acquisition and growth strides after announcing it would invest $100 million to advance digital experiences, member engagement and security solutions. 

Last year, PSCU acquired Juniper Payments LLC, enabling the company to offer faster and real-time payments. 

PSCU also launched its digital consulting practice, designed to help credit unions strategically manage and improve their digital investments. 

Today, PSCU serves over 2,400 financial institutions and completes 7.7 billion annual transactions. According to the latest financial report, PSCU earned $871 million in revenue in fiscal year 2022. 

Meanwhile, Co-op generated $527 million in 2022, working with 2,650 credit unions.