Vaughan, Ont.-based PACE Credit Union and Toronto-based Alterna Savings, have signed a letter of intent to merge operations, their boards of directors announced on Friday.
The proposed credit union entity will operate 39 branches in diverse communities under both the PACE and Alterna Savings banners, employ 600 staff, and serve a growing membership of 140,000 who hold $4.1 billion in assets under administration. No reduction in staff is anticipated, and no branches will close as a result.
“We are looking to provide members with greater geographical access to our unique blend of financial services and local community spirit,” said Larry Smith, president and CEO, PACE.
Rob Paterson, president and CEO of Alterna Savings’ will serve as CEO of the new credit union. Smith will take on the role of president.
The proposed transaction is still subject to a due diligence process, regulatory approval and approval by the credit unions’ respective memberships.