![]() I’m thrilled to welcome CardWorks to the Ally team and look forward to adding value for all of our stakeholders,” Brown adds. CardWorks Servicing is a focused servicing company that helps bankcard issuers across the country mitigate risk, increase profitability, and support their customers. ![]() “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. “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. 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. Read more: Belfius Bank goes live on SimCorp Dimension 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. a top-15 issuer of credit cards, top 15 merchant acquiring bank. ![]() The deal grows Ally’s user base to 11 million across 50 US states. As a leading consumer firm, we services our consumer and small business loan clients. Make the sale in-store or online, and take credit cards, EMV chip cards, gift cards, mobile wallets and more. Ally believes the purchase will also enhance its return profile and “immediately” improve revenue generating capabilities. Accept all the ways customers want to pay. 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. unsecured servicing platform and robust merchant services capabilities.
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