I’m thrilled to welcome CardWorks to the Ally team and look forward to adding value for all of our stakeholders,” Brown adds. “Both companies share a deep-rooted history of disciplined risk management and an obsession over the customer. “Beyond the compelling strategic rationale and financial enhancements this transaction brings, CardWorks is an ideal cultural fit for Ally. Auto lender Ally Financial Inc on Tuesday agreed to acquire privately held CardWorks for 2.65 billion as it looks to diversify its consumer product offerings, supported by a growing and low-cost. The transaction would have included about 1.35 billion of cash and 1.30 billion in Ally common stock. Cardholder Management Services, Inc., a leading non-prime credit card and consumer finance lender with a full-spectrum unsecured servicing platform and robust merchant services capabilities. “This acquisition serves as an important milestone in Ally’s evolution to be a full-service financial provider for our customers,” says Ally’s CEO Jeffrey Brown in a statement. The company was looking to purchase CardWorks in 2020. Ally had projected it would save more than 50 million annually with the deal. Cardworks is a privately held company with 4.7 billion in assets and 2.9 billion in deposits. It is also a bold move away from auto lending into the credit card and merchant acquiring space, so shareholders may also be waiting to see how well the company manages to integrate CardWorks into its current play. Auto lender Ally Financial Inc on Tuesday agreed to acquire privately held CardWorks for 2. Ally Financial recently announced that it entered a definitive agreement to buy CardWorks in a transaction valued at approximately 2.65 billion. Read more: Belfius Bank goes live on SimCorp Dimension Ally Financial and CardWorks are terminating their planned 2.65 billion merger, the companies announced Wednesday in a press release. But why are shareholders skeptical of the deal? It is a pricey acquisition considering CardWorks, with $4.7 billion in assets, is valued at around 1.8 times net tangible equity. announced today that it has entered into a definitive agreement to acquire CardWorks in a transaction valued at approximately 2.65 billion. (Reuters) - Auto lender Ally Financial Inc on Tuesday agreed to acquire privately held CardWorks for 2.65 billion as it looks to diversify its consumer. The deal grows Ally’s user base to 11 million across 50 US states. Ally believes the purchase will also enhance its return profile and “immediately” improve revenue generating capabilities. It is paying $1.35 billion in cash and 39.5 million shares for CardWorks, in a bid to diversify its product offering by “adding an established credit card platform and a nationwide merchant acquiring business” to its armory.
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