The consideration is subject to closing equity and other adjustments and fill-or-kill rights, Ally Financial stated.ĬardWorks chairman, founder and CEO Don Berman said: “Ally has built an industry-leading online banking franchise while simultaneously re-affirming the market leading positions of its auto finance and insurance businesses. I’m thrilled to welcome CardWorks to the Ally team and look forward to adding value for all of our stakeholders.”Ĭonsideration for the deal includes nearly $1.35bn in cash and $1.30bn in Ally Financial’s common stock or 39.5 million shares. “Both companies share a deep-rooted history of disciplined risk management and an obsession over the customer. Upon completion of the deal, Ally will be able to offer its services to an estimated 11 million consumers across all the 50 states with secured and unsecured banking products.Īlly Financial CEO Jeffrey Brown said: “CardWorks represents an industry-leading credit card platform in the U.S., and this acquisition serves as an important milestone in Ally’s evolution to be a full-service financial provider for our customers.” The additional capabilities could enhance Ally’s direct bank deposit and consumer product platform, while complementing its auto-finance, insurance and commercial product lines. Subject to customary closing conditions and regulatory approvals, the transaction could be closed in the third quarter of this year.ĬardWorks acquisition to further diversify Ally’s product offeringsīy adding an established credit card platform, full-spectrum servicing and recovery operation and a nationwide merchant acquiring business, the acquisition is expected to further diversify Ally’s product offerings. Under the terms of the agreements, Merrick Bank, a subsidiary of CardWorks, will be merged into Ally Bank. The deal is expected to provide Ally with an instant capability and scale in credit card including full-spectrum unsecured service capability and merchant services.
(Credit: Ally Financial Inc.)Īuto finance provider Ally Financial has agreed to acquire Cardholder Management Services (CardWorks), in a $2.65bn deal.Įstablished in 1987, CardWorks is a non-prime credit card and consumer finance company that has nearly $4.7bn in assets and $2.9bn in deposits.
Image: Ally Detroit Center, Ally Financial’s headquarters. The deal is expected to expand Ally's existing product offerings by adding a core banking product
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