![]() ![]() The transaction is also expected to improve Ally Financial's long-term financial trajectory. Pro forma for the transaction, CardWorks would have increased Ally Financial's full-year 2019 results across many metrics, including 17% higher adjusted total net revenue and 18% higher core pretax income. The acquisition of CardWorks is expected to enhance Ally Financial's financial profile. Based in Woodbury, N.Y., CardWorks has facilities in Florida, Utah and Pennsylvania. CardWorks has $4.7 billion in assets and $2.9 billion in deposits, according to a news release from Ally Financial, citing CardWorks' consolidated statements of financial condition as of Dec. The deal is expected to close in the third quarter.Īlly Financial had $180.6 billion in assets as of Dec. He will join Ally Financial's board and executive management team following closing, according to a news release from CardWorks. As a result, three years after the close of the transaction, Berman may sell or transfer any remaining Ally Financial common shares.īerman will continue to oversee the CardWorks business lines as part of Ally Financial. On each subsequent anniversary, Berman will be permitted to sell or transfer up to another one-third of his shares. Ally Financial common shares granted to 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 he can sell or transfer up to one-third of his shares. The merger consideration remains subject to closing equity and other adjustments and fill-or-kill rights.ĬardWorks Chairman and CEO Don Berman, who owns 70% of the company, will receive a combination of cash and Ally Financial common stock as his consideration. The consideration for the deal will include about $1.35 billion of cash and $1.30 billion in Ally Financial common stock, or 39.5 million shares based on Ally Financial's closing share price on Feb. Under the terms of the deal, CardWorks unit Merrick Bank Corp. in a cash-and-stock deal valued at about $2.65 billion. ![]() agreed to acquire nonprime credit card and consumer finance lender CardWorks Inc. “We are excited to explore acquisitions of companies, assets, or capabilities that expand CardWorks’ businesses and are in line with our vision for the future, particularly if we are lucky enough to find teams as talented as the Dataline team,” he added.Ally Financial Inc. “Our experience through cycles, disciplined approach to growth, and compliance-focused culture have led to the fortunate position of having a strong balance sheet and capital levels,” Pillemer said. Now, CardWorks gives Dataline “a greater breadth of resources, capabilities, and operational support to take their platform to an even higher level of client service,” according to the news release.Īnd Dataline will be positioned ”to grow its core business with existing clients, CWS clients and new clients, generating new opportunities,” according to CardWorks.ĬardWorks is now exploring “inorganic growth opportunities,” according to the news release. ![]() “Our team could not be more excited about becoming part of the CardWorks family, where we see energy, excitement, enthusiasm, and a team that is committed to doing the right thing.” “For nearly 37 years, Dataline has partnered with financial services companies to design, develop, and implement customized business process outsourcing and financial services operations support solutions that are enabled by optimized data management, Collin York, the founder of Dataline, said in the statement. “As such, the acquisition will further strengthen our end-to-end credit card and installment loan portfolio management and servicing offerings for banks, credit unions, non-bank lenders, and asset managers.” “Dataline has unique capabilities in payment disbursement services, data reporting and analytics, and business process automation, each of which are additive to our existing CWS capabilities,” Matt Berman, head of Cardworks’ Servicing Business, said in the statement. With the acquisition, Dataline is a wholly owned subsidiary of Cardworks.ĭan Pillemer, CardWork president and CEO, said in a news release about the acquisition that the services of the two firms “are highly complementary, run on values inspired by their founders and, importantly, have similar people-centric cultures focused on doing the right thing while putting customers first.” With the acquisition of Dataline, a Florida-based provider of business process outsourcing and financial services operations support, CardWorks aims to expand services for lenders and asset managers. Woodbury-based CardWorks Servicing, which provides operational servicing and support functions for credit card and installment loan product, has acquired Dataline Systems. ![]()
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