![]() ![]() The deal is expected to close in the third quarter of 2020.Īlly shares were down more than 11% in midday trading Wednesday following the news. He said he would have preferred to see the company build its card business organically or deploy capital elsewhere.ĬardWorks had previously received investments from Pacific Investment Management, Parthenon Capital Partners and Reverence Capital Partners. In a note to clients, Piper Sandler analyst Kevin Barker said Ally was paying a “steep price” to diversify its product offering. “Beyond the compelling strategic rationale and financial enhancements this transaction brings, CardWorks is an ideal cultural fit for Ally.” The management is laid back and so is the overall atmosphere, which at times can be a negative for an employee's drive to work. ![]() “This acquisition serves as an important milestone in Ally’s evolution to be a full-service financial provider for our customers,” Ally chief executive Jeffrey Brown said in statement. Fraud Analyst (Former Employee) - Woodbury, NY - JThe work environment is like any other office job, it's very high school and lots of gossip. Export your business card files and have them professionally printed or print them yourself. ![]() All standard sizes of business cards supported. Easily create your own business cards with a wide range of business card templates. Its common equity tier 1 capital ratio would remain largely unchanged, it said. What is CardWorks Create, design and print your own business cards with CardWorks Business Card Software. The acquisition had called for Ally to pay 1.35 billion in cash and 1.30 billion in common stock, or 39.5 million shares. “The combined company will be well positioned to meet the financial needs of our ever-growing customer base and deliver sustainable growth and performance,” said Berman.Īlly said it expected immediate enhancements of its revenues. CardWorks is a credit card issuer focused on the non-prime segment. He will continue to act as CEO of CardWorks. CardWorks chief executive Don Berman, who owns 70% of the company, will join Ally’s board of directors and become a member of its executive management team. Some analysts had suggested the company was paying a steep price for CardWorks and might be better off building a credit card business organically.Under the terms of the deal, Merrick Bank, a subsidiary of CardWorks, will merge into Ally Bank. On Wednesday, he said Ally’s “long-term strategic priorities remain intact” and its “industry-leading businesses and robust capital and liquidity positions will enable us to continue serving as a source of strength during these uncertain times for all of our customers.”Īlly’s shares fell 5.6% to $18.31 in Wednesday’s regular session before rallying by 9.2% to $20 in extended trading. Privately-held CardWorks is the parent company of Merrick Bank, which specializes in providing consumer loans to borrowers with subprime credit scores.Īs FinanceFeeds reports, “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.”īrown had called it “an important milestone in Ally’s evolution to be a full-service financial provider for our customer” and described CardWorks as “an ideal cultural fit for Ally.” The deal was the second-biggest bank acquisition announced in 2020. Neither company will incur any termination or break-up fees as a result of the decision to scrap the merger. “This was a difficult decision to make following a long process to bring two strong companies together,” he added. “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,” Ally CEO Jeffrey Brown said in a news release. Working at CardWorks Servicing in Woodbury, NY: Employee Reviews. The two companies said Wednesday they had agreed to terminate the merger agreement they had announced in February, citing the impact of the COVID-19 pandemic. Analyst CardWorks 2013-2019 Bds Marketing Canon 2010-2011 Education Certification. Ally Financial will not be completing its $2.7 billion acquisition of CardWorks, dealing a blow to its plans to diversify beyond auto loans. ![]()
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