Ally and CardWorks Reach Agreement on Sale of Ally's Credit Card Business

Group 1 - Ally Financial Inc. has entered into a definitive agreement to sell its credit card business to CardWorks, which includes a portfolio of $2.3 billion in credit card receivables and 1.3 million active cardholders as of December 31, 2024 [1][2] - The sale is part of Ally's strategy to focus on its core businesses, simplify its structure, and drive improved returns, according to CEO Michael Rhodes [2] - CardWorks views the acquisition as an exciting step in expanding its near-prime credit card business and has been a servicing partner to Ally's platform since its inception [2] Group 2 - The transaction is expected to close in 2025, pending customary closing conditions [2] - J.P. Morgan Securities LLC acted as the financial advisor for Ally, while Sullivan & Cromwell LLP served as its legal advisor [3] - CardWorks has been a leader in credit and payments for over 38 years, focusing on a people-first approach and innovative use of data and technology [6]