S&C is advising Ally Financial, a leading digital financial services company, in its $2.65 billion acquisition of CardWorks, a non-prime credit card and consumer finance lender. The acquisition will further diversify Ally’s product offerings, adding an established credit card platform as well as a full-spectrum servicing and recovery operation and a nationwide merchant acquiring business. Upon completion of the transaction, Ally will provide over 11 million customers in all 50 states with secured and unsecured banking products.
The S&C team advising Ally in this matter is led by financial services partners Mitch Eitel and Andrew Gerlach. Partner Marc Trevino and special counsel Rebecca Coccaro are advising on executive compensation matters. IP partner Mehdi Ansari is advising on intellectual property issues, and partner Eric Wang is advising on tax matters. Associates Nathan Baum, Blake Schell, RuiHui Yu, and Jonathan Rhein also provided valuable assistance. The transaction is subject to regulatory approval and closing conditions, and is expected to close in the third quarter of 2020.