Berman, currently owns 70% of the company. The chairman, CEO and founder of CardWorks, Don M. Per the deal, CardWorks’ subsidiary, Merrick Bank, will merge with Ally Bank. Notably, the final consideration is subject to closing equity, and other adjustments and fill-or-kill rights. Beyond the compelling strategic rationale and financial enhancements this transaction brings, CardWorks is an ideal cultural fit for Ally.”Īlly Financial is expected to fund the transaction with $1.35 billion in cash and $1.30 billion in its common stock. 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. It is focused on the non-prime segment, with a complementary full-spectrum unsecured servicing operation, which includes third-party servicing and recovery capabilities.Īlly Financial’s CEO, Jeffrey J. Headquartered in Woodbury, NY CardWorks is a privately held U.S. The deal, which is expected to close in the third quarter of 2020, is subject to customary regulatory approvals and closing conditions. I’m thrilled to welcome CardWorks to the Ally team and look forward to adding value for all of our stakeholders.Ally Financial Inc. Both companies share a deep-rooted history of disciplined risk management and an obsession over the customer. Beyond the compelling strategic rationale and financial enhancements this transaction brings, CardWorks is an ideal cultural fit for Ally. “I have tremendous admiration for the three decades of leadership Don Berman has provided as founder and CEO and remain impressed with what the entire team has accomplished in building a resilient, growing business with a commitment to the customer. “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,” said Ally CEO Jeffrey J. Additionally, CardWorks provides recreational and marine consumer finance products and is a top-15 merchant acquirer in the U.S. credit card issuer focused on the non-prime segment with a complementary full-spectrum unsecured servicing operation that includes third-party servicing and recovery capabilities. Upon completion of the transaction, Ally will provide more than 11 million customers in all 50 states with compelling secured and unsecured banking products.ĬardWorks is a privately held company headquartered in Woodbury, N.Y., with facilities in Florida, Utah, and Pennsylvania.ĬardWorks is a top-20 U.S. These additional capabilities immediately enhance Ally’s direct bank deposit and consumer product platform and complement the company’s market-leading auto finance, insurance, and commercial product lines. The acquisition of CardWorks will further diversify Ally’s product offerings, adding an established credit card platform, full-spectrum servicing and recovery operation and a nationwide merchant acquiring business. Under the terms of the agreement, Merrick Bank, a wholly owned subsidiary of CardWorks, will merge into Ally Bank. Cardworks is a privately held company with $4.7 billion in assets and $2.9 billion in deposits. Ally Financial has entered into a definitive agreement to acquire CardWorks in a transaction valued at about $2.65 billion.
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