Ally Financial To Buy Cardholder Management Services

(RTTNews) - Ally Financial Inc. (ALLY) has agreed to buy Cardholder Management Services for $2.65 billion.

CardWorks is a privately held company headquartered in Woodbury, NY with facilities in Florida, Pennsylvania and Utah.

Under the terms of the agreement, Merrick Bank, a wholly owned subsidiary of CardWorks, Inc., will merge into Ally Bank.

"The combination of CardWorks and Ally presents a tremendous opportunity for innovation, while we maintain a strong focus on our mission - which is to delight our clients and customers" said CardWorks Founder, Chairman and Chief Executive Officer Don Berman. "Ally is complementary to all of our existing consumer finance business lines, including our credit card and recreational lending businesses, as well as our merchant acquiring, third-party loan servicing, and recovery businesses. I am extremely enthusiastic about this acquisition and what it represents for our customers, clients, employees, and the communities in which we operate."

Don Berman will continue to oversee the CardWorks business lines as part of Ally and will join Ally's Board of Directors and executive management team following closing.