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