Dallas-based EDS Credit Union said its Friday purchase/assumption of the long-troubled $98 million Ensign FCU of Henderson, Nev. fits well into its long-term branding strategy.

The strategy "contains a national trademark which we've applied for" as it employs the InTouch name, its president/CEO Kent Lugrand said Monday.

Under a deal arranged by NCUA, the $772 million EDS, of Plano, with 8% capital said it had been approached by the agency last July and suspected "there were perhaps more than half a dozen other bidders though I don't know for sure," said Lugrand.

As for Ensign, the suburban Las Vegas CU only last month was reported "insolvent" by the Las Vegas media after it succumbed to large loan losses amid the deepening recession that has now taken four Nevada CUs and about the same number of banks.

"The 'brand charter' of Ensign FCU was very much in alignment with that of EDS Credit Union," said Lugrand noting that the "the decision to acquire Ensign wasn't based on the short-term economic challenges in Nevada" but was made because of the "fit" on EDS geographic diversification strategy.

EDS, formed out of Ross Perot's old Electronic Data Systems and later bought by Hewlett Packard Corp. now has members in all 50 states spurring its national footprint for the "InTouch" trademark, said Lugrand.

Initially, EDS expects the InTouch name to win approval by the Texas Credit Union Department by year-end and then await later trademark clearance from the U.S. Patent Office. EDS has been researching a rebranding "for four years and we've gone through 500 names," noted Lugrand.

Instant Insights /

EDS Using Ensign to Expand &#039;InTouch&#039; Brand

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