The company pursued the acquisition to further diversify its product offerings by adding a credit card platform, and a range of servicing and recovery operations and a nationwide merchant acquiring business.Īs per deal terms, Merrick Bank, a fully-owned subsidiary of CardWorks was to merge into Ally Bank, the online banking subsidiary Ally Financial. It is engaged in offering a range of financial services and insurance products to automotive dealerships and consumers. I want to express my deep appreciation for the considerable efforts and incredible commitment demonstrated by Ally and CardWorks employees.”īased in Michigan, Ally Financial is a digital financial-services company. “This was a difficult decision to make following a long process to bring two strong companies together. Ally Financial CEO comments on scrapping the deal with CardWorksĪlly Financial CEO Jeffrey Brown said: “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. Neither of them will have to pay any termination or break-up fees to the other following the scrapping of the deal. The parties have mutually agreed to terminate the deal, which was signed in February 2020 after taking into consideration the considerable impacts of the pandemic on global markets and also on the economy. (Credit: Ally Financial Inc.)Īlly Financial has scrapped its previously announced $2.65bn acquisition of Cardholder Management Services (CardWorks), a US-based consumer finance lender and servicer, owing to the ongoing Covid-19 pandemic. A GOOD CREDIT HISTORY IS IMPORTANT.As per deal terms, Merrick Bank, a fully-owned subsidiary of CardWorks was to merge into Ally Bank, the online banking subsidiary Ally FinancialĪlly Financial, CardWorks scrap $2.65bn deal due to coronavirus pandemic. THIS INCLUDES A REVIEW OF YOUR PERSONAL CREDIT HISTORY, DRUG TESTING, BACKGROUND CHECK, AND EMPLOYMENT/PERSONAL REFERENCES. CARDWORKS WILL DO A THOROUGH BACKGROUND CHECK FOR ALL HIRES.
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