Sale enables Ally to be more focused on its
core businesses; acquisition enhances CardWorks'
position as a leading credit card issuer and servicer
CHARLOTTE, N.C. and WOODBURY, N.Y., Jan. 22,
2025 /PRNewswire/ -- Ally Financial Inc. (NYSE: ALLY)
and CardWorks, Inc. today announced that they have entered into a
definitive agreement for CardWorks, and its wholly-owned bank
subsidiary, Merrick Bank, to acquire
Ally's credit card business, including a portfolio of $2.3 billion in credit card receivables with 1.3
million active cardholders as of Dec. 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 streamline our structure, prioritize our core
businesses, and drive improved returns," said Ally CEO Michael Rhodes. "We are proud of the results the
business generated over the last three years and pleased with the
terms of the agreement and the opportunity for this business to
continue growing with CardWorks. As we embark on the next chapter
at Ally, we remain relentlessly focused on doing right by our
customers, communities, employees and shareholders."
"This portfolio and platform acquisition is an exciting step in
the expansion of our near-prime credit card business, and a natural
fit for us," said CardWorks CEO Dan
Pillemer. "As servicing partner to the platform since
inception, we have always admired this talented team and are
thrilled to add them to the CardWorks and Merrick Bank 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 completion of customary closing
conditions.
J.P. Morgan Securities LLC served as the financial advisor and
Sullivan & Cromwell LLP served as legal advisor to Ally.
Cravath, Swaine & Moore LLP served as legal advisor to
CardWorks.
About Ally Financial
Ally Financial Inc. (NYSE: ALLY)
is a financial services company with the nation's largest
all-digital bank and an industry-leading auto financing business,
driven by a mission to "Do It Right" and be a relentless ally for
customers and communities. The company serves approximately 10
million customers with deposits 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 offers capital for equity sponsors and
middle-market companies. For more information, please visit
www.ally.com.
For more information and disclosures about Ally, visit
https://www.ally.com/#disclosures.
For further images and news on Ally, please visit
http://media.ally.com.
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
over 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 Bank, a wholly-owned
subsidiary of CardWorks, specializes in empowering non-prime and
near-prime consumers to achieve financial success. Discover how
Merrick Bank makes a difference at
www.merrickbank.com.
Contacts:
Peter Gilchrist
Ally Communications (Media)
704-644-6299
peter.gilchrist@ally.com
Sean Leary
Ally Investor Relations
704-444-4830
sean.leary@ally.com
Linda Dunbar
CardWorks Communications
513-926-1788
linda.dunbar@cardworks.com
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SOURCE Ally Financial
