League Data told BetaKit that the $1.8 million deal, which closed Jan. 1, will allow it to enhance the technological services it offers to credit union clients as well as extend its reach outside of Atlantic Canada for the first time.
The Jan. 1 acquisition marks five years since Technicost was acquired by Co-operators.
“The acquisition will allow Technicost continued growth with their product offering as well as providing an opportunity for both companies to scale technology, resources and credit union collaboration,” League Data CEO Carrie Forbes said in a statement.
Founded in 1975, League Data operates as the technology partner of the Atlantic Credit Union System, providing technology-based solutions and strategic guidance for its 42 member credit unions across Atlantic Canada, according to its LinkedIn. Some of its solutions for credit unions include vendor management, network security, and debit card management.
Laval, Québec-based Technicost has offered credit software products to Canadian financial institutions since its founding in 1982. The company counts online loan application, loan servicing, and electronic transaction software among its offerings, while its core TechLOS loan origination system is used in credit unions across the country.
The Jan. 1 acquisition date marks five years since Technicost was last acquired by Co-operators, which offers insurance and investment products and services. Co-operators is no stranger to the Canadian tech scene, having its own corporate venture capital arm that has invested in venture funds run by Portage Ventures, Framework Venture Partners, and Pender Ventures.
League Data said Technicost will continue to operate as an independent entity and its current management team and staff will remain in place, with operations continuing as usual for Technicost’s clients and partners.
UPDATE (01/16/24): This story has been updated with additional information provided by League Data.