Ally Financial and Cardholder Management Services (CardWorks) mutually agreed to terminate their merger agreement, which was announced on Feb. 18.
The board of directors for each company approved the termination after carefully considering the meaningful impacts of COVID-19 on global markets and the economy. Neither party will incur any termination or break-up fees as a result of the mutual decision to terminate the merger agreement.
“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,” Jeffrey J. Brown, CEO of Ally, said. “This was a difficult decision to make following a long process to bring two strong companies together. I want to express my deep appreciation for the considerable efforts and incredible commitment demonstrated by Ally and CardWorks employees.
“Ally’s long-term strategic priorities remain intact, rooted in a relentless focus on our customers. Our 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. We will leverage these strengths as we grow and diversify our company moving forward. Ally is resilient and adaptable, powered by a vibrant, inclusive culture that will continue to ‘Do It Right’ for our customers, our communities and our shareholders.”
Ally Financial is a digital financial-services company.
CardWorks is a consumer finance lender and servicer.
