CardWorks

About CardWorks

CardWorks is a consumer lender, merchant acquiring bank, and loan servicer to regulated financial institutions and non-bank lenders. CardWorks provides servicing operations and portfolio management to bank and non-bank consumer and small business lenders through CardWorks Servicing and Carson Smithfield. CardWorks Servicing is an independent servicer of nationally-branded Visa®/Mastercard® cards, secured cards, and unsecured installment loans. Carson Smithfield provides post-charge-off debt recovery services.On February 18, 2020, CardWorks announced it was being acquired by Ally Financial for $2.65B. However, on June 24, 2020, both parties announced that the deal had been called off.This was due in part to the structure of the deal. According to the acquisition announcement, the share number of the deal was based on Ally’s closing stock price of $32.85 on February 14, and the price was based on Ally’s forecast of closing equity and other adjustments, excluding any possible kill-or-fill adjustment. Such an adjustment was said to potentially arise if Ally’s stock price were to decline by more than 15% in which case a kill-or-fill termination right would be exercised in which Ally can elect to fill it by issuing additional stock. In this deal, it appears that Ally which saw its stock price drop post deal opted not to "fill" the deal per reports.