Important Announcement from ICUL Board of Directors: TMG's Change of Ownership4/3/2017
The Iowa credit union movement has a long history of building, growing and reinventing companies that benefit credit unions and improve the financial lives of millions of consumers. This has allowed the Iowa Credit Union League (ICUL) to provide needed services to Iowa credit unions, while consistently increasing member value and decreasing dues.
There comes a point when all companies are ready for their next level of growth and transformation. Today, after thoughtful consideration, we are pleased to announce the ICUL Board of Directors has signed an agreement to sell the majority stake in TMG to minority owner CO-OP Financial Services for $100 million, effective immediately. As a 49 percent owner of TMG for the past five years, CO-OP is closely aligned with TMG's leadership and operations. And like TMG, CO-OP is credit-union owned and was built on cooperative principles.
This transaction comes from a position of success of TMG and we believe this ownership transition will benefit all companies involved. As TMG and CO-OP come together as one, their complementary businesses will be better positioned to meet the evolving needs of the payments industry and credit unions into the future.
Delivering Member Value
While this transaction creates a substantial change for ICUL and our holding company, Affiliates Management Company (AMC), it also creates new opportunity and is not uncommon for our organization. As we continue to evolve to meet your changing needs, our ongoing goals will be to:
- Reduce Iowa credit union dues while increasing ICUL services and member value
- Reinvest in and grow our AMC businesses to benefit credit unions
- Explore new opportunities that achieve ICUL Board directives and create positive impact on Iowa credit unions and their 1.1 million members
Working in collaboration with the ICUL/AMC Boards and leadership, we will take a long-term, strategic approach to exploring the best ways to maximize proceeds from the TMG sale to achieve an ongoing balance of shareholder return and long-term growth and value. Rest assured, we will continually explore ways to provide and grow services needed by credit unions as we have always done. This visioning requires time and thoughtfulness to ensure it is done right. More information on our strategic planning will be communicated as we meet over the coming months.
Employee and Client Impact
Employees have been given a great deal of consideration and are being treated fairly during this transition. As part of the agreement, all TMG leadership and employees will begin transitionining to CO-OP with their current jobs and salaries. CO-OP has also committed to keeping its business at TMG's existing Des Moines locations for the next seven years. In general, TMG's products, platforms and services remain intact during the transition.
For ICUL, the Iowa Credit Union Foundation, AMC and its remaining operating companies (Coopera, PolicyWorks and TMG Financial Services), it is business as usual for our employees and clients.
For those of you who are clients of TMG, we have been working closely with CO-OP and TMG to make the transition as seamless as possible. At this time, you can expect no changes to your account representatives, contracts and service agreements. Soon you will receive an email from Todd Clark, President/CEO of CO-OP, providing more information.
The future is bright for our Iowa member credit unions, for ICUL and our family of companies. We look forward to updating and engaging with you as we move forward.
We encourage you to refer to ICUL's media statement, the public news announcement and Q&A for further information. You may also reach out to either of us with questions and we will do our best to answer them.
On behalf of the Iowa Credit Union League Board of Directors, we thank you for your continued support and membership.
ICUL Board Chair
Patrick S. Jury
ICUL President and CEO
800.860.6180, ext. 3002