OTTAWA -- MBNA Canada, a credit-card issuing unit of Bank of America, is buying CUETS, the largest MasterCard issuer for credit unions in Canada.
The price being paid for CUETS or CU Electronic Transaction Services, owned jointly by the Saskatchewan and Alberta credit union centrals, was not disclosed.
CUETS "will become a subsidiary of MBNA Canada Bank, leveraging superior capabilities of both companies to increase customer value and grow market share in Canada," according to a joint statement released May 30.
"The acquisition significantly increases the size and capabilities of MBNA Canada Bank, a subsidiary of Bank of America, solidifying its position as the country's leading provider of affinity and co-branded consumer lending products and the second-largest MasterCard issuer in Canada based on loans outstanding," MBNA Canada said in a statement.
The expanded MBNA Canada subsidiary will be led by Stan Kuss, chief executive of CUETS. The sale "is a strategic move that is in the best interest of CUETS, its credit union clients and their members," said Sid Bildfell, chairman of the CUETS board and CEO of Credit Union Central of Saskatchewan.
"CUETS and its clients will now have the opportunity to incorporate the MBNA products, service and marketing strategies to achieve even greater results with their programs," Bildfell said.
Bildfell added that the sale agreement "includes a continued presence for CUETS and employment of CUETS employees in our home cities of Regina and Winnipeg."