Ally Financial and CardWorks have formalized an agreement in which CardWorks, along with its fully owned subsidiary, Merrick Bank, will acquire Ally's credit card division. This acquisition includes a significant portfolio consisting of $2.3 billion in credit card receivables and 1.3 million active cardholders as of December 31, 2024.
Ally CEO, Michael Rhodes, commented on the sale, stating, "This decision aligns with our broader strategic objective of creating a more focused company structure. It allows us to streamline operations, concentrate on our core business areas, and enhance returns."
