CardWorks, Inc. closed the acquisition of Ally Financial’s credit card portfolio and platform today, including a team of talented individuals and 1.3 million active cardholders. Merrick Bank, the wholly-owned bank subsidiary of CardWorks, will acquire a portfolio of $2.2 billion in credit card receivables, enhancing Merrick Bank’s position as a top non-prime and near-prime credit card issuer.
“This acquisition is a perfect example of what CardWorks does best – finding the right opportunities and executing with precision,” said Don Berman, Founder and Executive Chairman of CardWorks. “We’ve worked with the Ally Card team for years as their servicing partner and bringing them under our roof just makes sense. It’s a win-win that expands our reach in the near-prime market and adds tremendous value for our stakeholders. I’m proud of our team for making this happen and excited about where we’re headed next.”
“Speaking for the Ally Card team, we are thrilled to have CardWorks as our new home,” said Rob Habgood, the founder of Fair Square, which was later acquired by Ally Financial. “We are excited to expand our reach and help more customers on their financial journey. CardWorks has done a terrific job of prioritizing a smooth transition for our employees and our customers, which puts the combined team in a great position to drive the next phase of our mission.”
“We are thrilled to welcome Ally’s credit card customers and team members to the CardWorks family,” said CardWorks CEO Dan Pillemer. “This acquisition reflects our continued commitment to strategic expansion in the near-prime credit space and adds tremendous people and capabilities to our team.”
“We expect to continue to utilize both organic and inorganic growth as we become a larger bank and specialty finance company,” continued Pillemer. “We are confident that this acquisition will demonstrate our ability to acquire and seamlessly integrate high quality credit platforms.”
