Berman will join Ally's Board of Directors and become a member of Ally's executive management team following closing. Berman may sell or transfer any remaining shares of Ally common stock. As a result, three years after close of the transaction, Mr. Berman will be permitted to sell or transfer up to another one-third of his shares. Berman can sell or transfer up to one-third of his shares. Berman will be subject to a lock-up agreement restricting the sale or transfer of 100% of his shares until the one-year anniversary of the closing date, at which point Mr. Shares of Ally common stock granted to Mr.

Berman, Chairman, Chief Executive Officer and Founder of CardWorks, owns 70% of CardWorks and will receive a combination of cash and Ally common stock as his consideration. The merger consideration remains subject to closing equity and other adjustments and fill-or-kill rights.ĭon M. I'm thrilled to welcome CardWorks to the Ally team and look forward to adding value for all of our stakeholders.'Ĭonsideration 3 for the transaction will include approximately $1.35 billion of cash and $1.30 billion in Ally common stock, or 39.5 million shares 4. 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. '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. '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. Additionally, CardWorks provides recreational and marine consumer finance products and is a top-15 2 merchant acquirer in the United States. credit card issuer focused on the non-prime segment with a complementary full-spectrum unsecured servicing operation that includes third-party servicing and recovery capabilities. Upon completion of the transaction, Ally will provide over 11 million customers in all 50 states with compelling secured and unsecured banking products.ĬardWorks is a privately held company headquartered in Woodbury, NY with facilities in Florida, Utah and Pennsylvania. These additional capabilities immediately enhance Ally's award-winning direct bank deposit and consumer product platform and complement the company's market-leading auto finance, insurance, and commercial product lines. The acquisition of CardWorks will further diversify Ally's product offerings, adding an established credit card platform, full-spectrum servicing and recovery operation and a nationwide merchant acquiring business. Under the terms of the agreement, Merrick Bank, a wholly owned subsidiary of CardWorks, Inc., will merge into Ally Bank. Cardworks is a privately held company with $4.7 billion in assets and $2.9 billion in deposits 1. (NYSE: ALLY) announced today that it has entered into a definitive agreement to acquire CardWorks in a transaction valued at approximately $2.65 billion. 18, 2020 / PRNewswire/ - Ally Financial Inc. Enhances Ally's return profile and immediately improves revenue generating capabilitiesĬHARLOTTE, N.C., Feb. Aligns with Ally's long-term strategic objective to provide a comprehensive suite of compelling, differentiated financial services products for our customers

Acquisition provides Ally instant capability and scale opportunity in credit card, including full-spectrum unsecured servicing capability, and merchant services Strong cultural fit across both firms - relentless customer-focus and ongoing commitment to stakeholders, employees and communities Experienced and cycle-tested team with deep unsecured lending expertise

CardWorks, founded in 1987, is a leading non-prime credit card and consumer finance lender with a full-spectrum unsecured servicing platform and robust merchant services capability Subsidiary Financials & Other Regulatory Filings Investor Relations Investor Relations Overviewįixed Income Financial Information Corporate Governance Back to Investor Relations menu Press Room Press Room Highlights Press Releases General account questions (personal loans only)Ībout Us Our Company Social Impact Careers Investor Relations Press Room Suppliers Back to About Us menu Our Company Overview History Awards & Recognition Headquarters & Offices Back to About Us menu Social Impact Overview Economic Mobility Employee Giving Diversity, Equity, & Inclusion Grants & Sponsorships Back to About Us menu Careers Careers at Ally Interns & Graduates Employee Benefits Back to

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