UK fintech ieDigital acquires CUSO Connect FSS to tap US market
London-based fintech ieDigital is set to acquire Connect FSS as part of its plans to expand the international market reach of its digital banking software.
ieDigital acquires US CUSO Connect FSS
Founded in 2008 and based in Sandy, Utah, Connect FSS is a credit union service organisation (CUSO) and digital banking technology provider to credit unions in the US, with services including account access, deep core system integration and lending workflows, among others.
Following what it describes as a year-long “detailed search” for a business partner, ieDigital says that it hopes its latest acquisition will “accelerate its growth plans” and “deliver new and improved digital software solutions” to both financial services firms and credit unions.
As part of the deal, which will see the two companies become part of the new ieDigital Group, ieDigital’s CEO, Jerry Young, will become group CEO and Grant Parry, CEO and president of Connect FSS, will be brought in as executive vice president of strategy.
The fintech’s announcement stresses that while Young and Parry’s leadership will “work in synergy”, both companies will continue to separate their brand names and websites in their respective markets, with Connect FSS remaining as a CUSO.
Young says the acquisition will “enable us to support a broader range of customers in different geographies that we wouldn’t have otherwise been able to reach”.
He also acknowledges the opportunity to “strengthen our technology with insight from our new colleagues in the US”.
Adding to this, Parry describes the deal as “a natural next step in our evolution as a business” and recognises the “clear synergy between our two cultures, and in terms of the technology and skillsets that we share”.
