CardWorks announces its acquisition by Ally Financial.
WOODBURY, New York, February 18, 2020 / PRNewswire / – Cardholder Management Services, Inc. (“CardWorks”), a leading consumer and consumer credit lender with a full spectrum, unsecured service platform and strong capabilities of merchant services, today announced that it has signed a definitive contract to be acquired by Ally Financial Inc. (NYSE: ALLY) in a transaction valued at more than $ 20.65 billion, subject to closing equity and other adjustments.
The fence will bring together two customer-obsessed companies focused on ‘getting it right’, with a shared common vision and aligned cultural values. This combination will provide customers with a full range of attractive secure and unsecured banking products.
CardWorks is a privately held company headquartered in Woodbury, New York with facilities in Florida, Pennsylvania and Utah. As a leading provider of credit and consumer credit cards with service capabilities across the credit spectrum, one of the top 20 credit card issuers in the United States and one of the top 15 merchant acquirers in the United States United, the roadmap includes expanding the Ally segment’s product offerings, as well as improving their direct deposit and consumer product platform, as well as their third-party service and recovery capabilities.
Under the terms of the agreement, Merrick Bank, a wholly owned subsidiary of CardWorks, Inc., will merge into Allied bank.
“The combination of CardWorks and Ally presents a tremendous opportunity for innovation, as we maintain a strong focus on our mission – which is to delight our clients and clients,” said Founder, President and CEO of CardWorks Don berman. “Ally complements all of our existing consumer credit businesses, including our credit card and recreational lending businesses, as well as our merchant acquisition, third-party loan management and collections businesses. I am extremely excited about this acquisition and what it represents. represents for our clients, our customers, our employees and the communities in which we operate. ”
Don berman will continue to oversee the CardWorks lines of business within Ally and join Ally’s board of directors and management team following close.
Ally Financial Inc. is a leading digital financial services company focused on “getting it right” for consumer, business and corporate clients. The company operates one of the largest full-service auto finance operations in the country, providing a wide range of financial services and insurance products to auto dealers and consumers. Additionally, Ally’s award-winning online banking (Allied bank, FDIC member and Equal Housing Lender) offers mortgage loan services and a variety of deposit and other banking products. The company also offers securities brokerage and investment advisory services through Ally Invest, as well as a strong corporate finance business that provides capital to equity sponsors and mid-market companies.
“CardWorks is a leading credit card platform in the United States, and this acquisition is an important step in Ally’s evolution to become a full-service financial provider for our customers,” said the Director general ally Jeffrey J. Brown. “Culturally, Ally and CardWorks are ideal partners as the two companies share a deeply rooted history of disciplined risk management and an obsession with the client.”
The acquisition, which is subject to customary regulatory approvals and closing conditions, is expected to be completed in the third quarter of 2020.
Wachtell, Lipton, Rosen & Katz acted as legal advisers to CardWorks in connection with the transaction.
About CardWorks Inc.
Founded in 1987, CardWorks is a consumer finance lender and provider, as well as a people-centric, compliance-driven organization through data and technology. CardWorks is a leading provider of national brand MasterCard / Visa cards, private label cards, secure cards and other unique products, as well as secured and unsecured installment loans.
Visit www.cardworks.com for more information.
About Merrick Bank
Merrick Bank, founded in 1997 as a wholly owned subsidiary of CardWorks, is one of the top 20 FDIC-insured Visa® credit card issuers. Merrick Bank also offers financing options to consumers through marine and recreational vehicle dealers across the country. While Merrick Bank specializes in non-senior consumer loans, he is also one of the top 15 credit card merchant acquirers, compensating about $ 32 billion in volume of transactions per year for 85,000 merchants and 42 independent sales organizations.
Visit www.merrickbank.com for more information.
About Financière Ally inc.
Ally Financial Inc. (NYSE: ALLY) is a leading digital financial services company with $ 180.6 billion in assets as of December 31, 2019. As a customer-centric company with passionate customer service and innovative financial solutions, we relentlessly focus on “Getting it Right” and being a trusted financial services provider to our consumer, business and corporate clients. We are one of the largest full-service auto finance operations in the country and provide a wide range of financial services and insurance products to auto dealers and consumers. Our award-winning online banking (Allied bank, FDIC member and Equal Housing Lender) offers mortgage loan services and a variety of deposit and other banking products, including savings accounts, money market and checking accounts, certificates of deposit (CDs) and individual retirement accounts (IRA). In addition, we offer securities brokerage and investment advisory services through Ally Invest. Our strong corporate finance business provides capital to equity sponsors and mid-market companies.
For more information and disclosures about Ally, visit https://www.ally.com/#disclosures
SOURCE CardWorks Inc.