Auto lender Ally Financial has agreed to buy consumer finance lender CardWorks for $2.65 billion.
The deal includes $1.35 billion in cash and $1.30 billion in Ally common stock. CardWorks has $4.7 billion in assets and $2.9 billion in deposits.
In a statement, Ally said the deal would provide “instant capability and scale opportunity” in credit cards and merchant services and would improve its return on tangible common equity by about 100 to 150 basis points for 2021 and 2022. It said the transaction could increase its adjusted profit by up to a percentage point by 2022.
Under the terms