The sale enables Ally to be more focused on its core businesses; the acquisition enhances CardWorks’ position as a leading credit card issuer and servicer
CHARLOTTE, NC AND WOODBURY, NY, January 22, 2025 /PRNewswire/ — Ally Financial Inc . (NYSE: ALLY) and CardWorks, Inc. announced today that they have entered into a definitive agreement for CardWorks and its wholly-owned banking subsidiary, Merrick Bankto acquire Ally’s credit card business, including a portfolio of 2.3 billion dollars in credit card receivables with 1.3 million active cardholders to date December 31, 2024.
“Ally’s decision to sell its credit card business is part of our broader strategy to pursue a more focused approach, enabling us to simplify and modernize our structure, prioritize our core businesses and bring improved returns,” Ally’s CEO said. Michael Rhodes. “We are proud of the results the business has generated over the past three years and pleased with the terms of the agreement and the opportunity for this business to continue to grow with CardWorks. As we embark on the next chapter at Ally, we remain relentlessly focused on making properly by our customers, communities, employees and shareholders.”
“This wallet and platform acquisition is an exciting step in expanding our near-top credit card business and a natural fit for us,” said the CardWorks CEO. Dan Pillemer. “As a platform service partner since the beginning, we have always admired this talented team and are delighted to add them to CardWorks and Merrick Bank the family.”
Ally and CardWorks will work together to ensure a smooth transition for customers and employees. The transaction is expected to close in 2025, subject to the satisfaction of customary closing conditions.
JP Morgan Securities LLC served as financial advisor and Sullivan & Cromwell LLP served as legal advisor to Ally. Cravath, Swaine & Moore LLP served as legal counsel to CardWorks.
About Ally Financial
Ally Financial Inc. (NYSE: ALLY) is a financial services company with the nation’s largest all-digital bank and a leading business in the auto finance industry, driven by a mission to “Do it Right” and be a relentless ally to customers and communities. The company serves approximately 10 million customers with deposit and securities brokerage and investment advisory services, as well as auto financing and insurance offerings. The company also includes a robust corporate finance business that provides capital to equity sponsors and middle market companies. For more information, please visit www.ally.com.
For more information and discoveries about Ally, visit https://www.ally.com/#disclosures.
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About CardWorks and Merrick Bank
CardWorks is a trusted leader in credit and payments, known for its people-first approach, innovative use of data and technology, and unwavering commitment to compliance. For more than 38 years, CardWorks has empowered millions of customers and partnered with businesses to deliver tailored financial solutions that drive success. Learn more at www.cardworks.com.
Merrick Banka wholly owned subsidiary of CardWorks, specializing in empowering non-prime and near-prime consumers to achieve financial success. Find out how Merrick Bank makes a difference at www.merrickbank.com.
Contacts:
Peter Gilchrist
Ally Communications (Media)
704-644-6299
[email protected]
Sean Leary
Allied Investor Relations
704-444-4830
[email protected]
Linda Dunbar
CardWorks Communications
513-926-1788
[email protected]
SOURCE Allied Financial