![]() 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. ![]() The decision was taken due to the ongoing market fluctuations and economic stress caused by the COVID-19 pandemic. Announcing Allys acquisition of CardWorks February 19. Ally Financial will not be completing its 2.7 billion acquisition of CardWorks, dealing a blow to its plans to diversify beyond auto loans. Ally Financial announced on Wednesday that it has terminated the acquisition and merger deal of CardWorks set for 2.65 billion. Under the terms of the agreement, Merrick Bank, a wholly owned subsidiary of CardWorks, Inc., would have merged into Ally Bank. ALLY SEC Filings - Ally Financial Inc - Annual Report, Proxy Statement. (CardWorks) announced that they have mutually agreed to pull out of their planned merger agreement due to. ![]() I want to express my deep appreciation for the considerable efforts and incredible commitment demonstrated by Ally and CardWorks employees.”īack in February, Ally Financial said it had entered into a definitive agreement to acquire CardWorks in a transaction valued at approximately $2.65 billion. ( ALLY) and Cardholder Management Services, Inc. This was a difficult decision to make following a long process to bring two strong companies together. CardWorks, founded in 1987, specializes in unsecured servicing and merchant services, though it also offers recreational and marine consumer finance loans. “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. Neither party will incur any termination or break-up fees as a result of the mutual decision to terminate the merger agreement.Īlly Chief Executive Officer Jeffrey J. Founded in 1987, CardWorks is a consumer finance lender and servicer. (NYSE: ALLY) is a leading digital financial services company, NMLS ID 3015. The board of directors for each company approved the termination after taking into account the impacts of COVID-19 on global markets and the economy. Each of our business lines continues to perform extremely well during these challenging and uncertain times. CardWorks is in an exceptionally strong financial position and our long-term strategic priorities remain intact. (CardWorks) on Wednesday announced that they have mutually agreed to terminate their merger agreement, which had been announced on February 18, 2020. CardWorks has proven through previous recessions to be a great company in difficult times. The parties to the deal have mutually agreed to terminate their merger agreement.Īlly Financial Inc (NYSE:ALLY) and Cardholder Management Services, Inc.
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