"Culturally, Ally and CardWorks are ideal partners as both companies share a deep-rooted history of disciplined risk management and an obsession over 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 Chief Executive Officer Jeffrey J.
The company also offers securities-brokerage and investment-advisory services through Ally Invest, as well as a robust corporate finance business that offers capital for equity sponsors and middle-market companies. In addition, Ally's award-winning online bank ( Ally Bank, Member FDIC and Equal Housing Lender) offers mortgage-lending services and a variety of deposit and other banking products. The company operates one of the largest full-service automotive-finance operations in the country, offering a wide range of financial services and insurance products to automotive dealerships and consumers. is a leading digital financial services company focused on "Doing it Right" for its consumer, commercial, and corporate customers. I am extremely enthusiastic about this acquisition and what it represents for our customers, clients, employees, and the communities in which we operate."ĭon Berman will continue to oversee the CardWorks business lines as part of Ally and will join Ally's Board of Directors and executive management team following closing.Īlly Financial Inc. "Ally is complementary to all of our existing consumer finance business lines, including our credit card and recreational lending businesses, as well as our merchant acquiring, third-party loan servicing, and recovery businesses. "The combination of CardWorks and Ally presents a tremendous opportunity for innovation, while we maintain a strong focus on our mission – which is to delight our clients and customers" said CardWorks Founder, Chairman and Chief Executive Officer Don Berman. Under the terms of the agreement, Merrick Bank, a wholly owned subsidiary of CardWorks, Inc., will merge into Ally Bank. merchant acquirer, the roadmap includes expanding Ally's product offerings in the non-prime segment, as well as enhancing their direct bank deposit and consumer product platform, and third-party servicing and recovery capabilities. As a leading non-prime credit card and consumer finance provider with servicing capabilities across the credit spectrum, a top-20 U.S. This combination will provide customers with a comprehensive suite of compelling secured and unsecured banking products.ĬardWorks is a privately held company headquartered in Woodbury, NY with facilities in Florida, Pennsylvania and Utah. Some analysts had suggested the company was paying a steep price for CardWorks and might be better off building a credit card business organically.The closing will bring together two customer-obsessed companies that are focused on "Doing it Right", with a shared common vision and aligned cultural values. On Wednesday, he said Ally’s “long-term strategic priorities remain intact” and its “industry-leading businesses and robust capital and liquidity positions will enable us to continue serving as a source of strength during these uncertain times for all of our customers.”Īlly’s shares fell 5.6% to $18.31 in Wednesday’s regular session before rallying by 9.2% to $20 in extended trading. Privately-held CardWorks is the parent company of Merrick Bank, which specializes in providing consumer loans to borrowers with subprime credit scores.Īs FinanceFeeds reports, “The acquisition of CardWorks was supposed to further diversify Ally’s product offerings, adding an established credit card platform, full-spectrum servicing and recovery operation and a nationwide merchant acquiring business.”īrown had called it “an important milestone in Ally’s evolution to be a full-service financial provider for our customer” and described CardWorks as “an ideal cultural fit for Ally.”
The deal was the second-biggest bank acquisition announced in 2020. Neither company will incur any termination or break-up fees as a result of the decision to scrap the merger. “This was a difficult decision to make following a long process to bring two strong companies together,” he added. “Given the unprecedented economic and market conditions resulting from the COVID-19 global pandemic, Don Berman and I, along with our boards of directors, believe it is in the best interests of our customers and stakeholders to terminate the agreement,” Ally CEO Jeffrey Brown said in a news release. The two companies said Wednesday they had agreed to terminate the merger agreement they had announced in February, citing the impact of the COVID-19 pandemic. Ally Financial will not be completing its $2.7 billion acquisition of CardWorks, dealing a blow to its plans to diversify beyond auto loans.
0 kommentar(er)
