New Business to Provide Credit Unions with Wide Range of Products, Services
MOUNDS VIEW, Minn., and TAMPA, Fla., Aug. 4 /PRNewswire/ -- Liberty
Internet Services and CUNA Network Services ("CNS") announced today they have
entered into an agreement to merge their existing businesses. The new entity
will initially serve more than 1,500 credit unions with a comprehensive range
of Internet-enabled products and services.
"This transaction demonstrates Liberty's continued and increased
commitment to help credit unions compete on the Internet," Liberty Enterprises
President & CEO Stan Hollen said. "We are well-positioned for now and the
future to continue to deliver high quality technology solutions."
CNS Chairman Juri Valdov also voiced his enthusiastic support for the new
agreement.
"Combining our operations in this way is the right move at the right time.
Credit unions eager for attractive and affordable e-commerce services will be
the ultimate beneficiaries," Valdov said. "The agreement serves the entire
credit union movement well and has my full support."
A seven-member board will direct the new business. Liberty will appoint
five directors and CNS will appoint two. Liberty Enterprises Executive Vice
President Michael Provenzano, also President of Liberty Internet Services,
will serve as interim CEO of the newly merged organization. John Hobko, CNS
President and CEO, has accepted the position of executive vice president and
chief business development officer with the new entity. Hobko will continue
in his role of President and CEO of CNS through the transition.
"Combining the resources of both businesses will allow us to offer more
and better choices for Web site hosting, Internet banking, bill payment,
lending, compliance, Internet security and other services," Provenzano and
Hobko said in a joint statement. "Merging our strengths will help us realize
certain efficiencies so we can bring leading-edge products to the market
quicker. Additional transition details will be provided as they become
available."
"As we progress through the merger and transition, our respective
customers and their members can expect to experience 'business as usual,'"
said Hobko. "What won't change is the exceptional service for which both
companies are known."
Hollen said the new agreement is a "shining example of Liberty's efforts
to seek out logical business partnerships. Liberty will continue to explore
the best means of providing such services and this may take the form of
acquisitions, mergers, joint ventures, or other strategic alliances."
"The merger with CNS will allow us to continue to build on our financial
strength and provide our customers with solutions that make a difference in
their operations," Hollen said. "We will continue to seek strategic alliances
such as this one."
For more information, please contact Michael Provenzano, Liberty, at
800-607-2435, ext. 5308 or John Hobko, CNS, at 813-739-2343. Media inquiries
should be directed to Rick Foy, Liberty public & media relations manager, at
800-607-2435, ext. 5436 or rfoy@libertysite.com or Pat Keefe, CUNA public
relations, at 202-508-6765, or pkeefe@cuna.coop .
ABOUT LIBERTY INTERNET SERVICES AND LIBERTY ENTERPRISES
Liberty Internet Services, a division of Liberty Enterprises, Inc.,
provides services through Liberty Online and Liberty Cavion.
Liberty Enterprises, Inc. is a family- and employee-owned company
headquartered in the Twin Cities suburb of Mounds View, Minnesota, and
partners with more than 5,400 credit unions. In addition to its Internet
services, Liberty is the credit union movement's leading provider of checks,
cards, financial supplies, database marketing, and creative services. For
more information, visit http://www.libertysite.com .
ABOUT CUNA NETWORK SERVICES
CUNA Network Services, LLC provides credit unions with an e-commerce
strategy to leverage the efficiencies of the Internet to better serve members
and remain a strong competitor. CNS offers products and services from Web
site design and development, to Internet banking and security and compliance
solutions. Additional e-commerce products and services will continue to be
added to the current portfolio.
CUNA Strategic Services, Inc. (CSSI), a subsidiary of the Credit Union
National Association, became a minority owner of CNS when it contributed its
e-commerce assets to Sunstar IP Communications in July, 2001 and Sunstar
changed its name to CNS. For more information, visit http://www.cns.coop .
SOURCE Liberty Enterprises, Inc.
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Related links:
http://www.libertysite.com
http://www.cns.coop
CONTACT:
Rick Foy of Liberty, +1-800-607-2435, ext.
5436, or Pat Keefe of CUNA, +1-202-508-6765
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