Ally acquires credit card company for more than $2 billion

Ally will provide more than 11 million customers with secured and unsecured banking products after the acquisition

Ally

Ally acquires credit card company for more than $2 billion. Source: media.ally.com

Ally announced it has signed a definitive agreement to acquire CardWorks for approximately $2.6 billion. Under the terms of the agreement, Merrick Bank, a wholly-owned subsidiary of CardWorks, will merge into Ally Bank.

The acquisition is expected to diversify Ally’s product offerings by adding an established credit card platform and full-spectrum servicing. A nationwide merchant acquiring business might have been included as well.

These extra capabilities would immediately enhance Ally’s direct bank deposit and consumer product platform. What is more, they would complement the company’s market-leading auto finance, insurance, and commercial product lines.

CardWorks represents an industry-leading credit card platform in the US, and this acquisition serves as an important milestone in Ally's evolution to be a full-service financial provider for our customers. 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. Beyond the compelling strategic rationale and financial enhancements this transaction brings, CardWorks is an ideal cultural fit for Ally. Both companies share a deep-rooted history of disciplined risk management and an obsession over the customer
Jeffrey J. Brown, Ally Chief Executive Officer 

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