CardWorks’s Acquisition of Ally’s Credit Card Business

On January 22, 2025, CardWorks, Inc. ("CardWorks"), a leader in credit and payments, and Ally Financial Inc. ("Ally"), a financial services company with the nation's largest all-digital bank and an industry-leading auto financing business, announced that they have entered into a definitive agreement for CardWorks, and its wholly-owned bank subsidiary, Merrick Bank, to acquire Ally's credit card business, including a portfolio of $2.3 billion in credit card receivables with 1.3 million active cardholders as of December 31, 2024. Cravath is representing CardWorks in connection with the transaction.

The Cravath team is led by partners Ting S. Chen and Andrew M. Wark and includes associates Ryan J. Wichtowski, Danielle A. Solaru and Juan P. Castaño and foreign associate attorney Ricardo Pedroza on M&A matters; partner J. Leonard Teti II and associate Emily R. Eskin on tax matters; partner Jonathan J. Katz, senior attorney Arian Mossanenzadeh and associate Matthew S. Johnson on executive compensation and benefits matters; partner Jelena McWilliams, of counsels Will C. Giles and Lucas E. Beirne and associate Max D. Brashear on bank regulatory matters; partner David J. Kappos, associate Kenya Rowser and foreign associate attorney Shogo Tsunoda on intellectual property matters; and partner Noah Joshua Phillips and associate Shuyu Sun on antitrust matters. Grace Lin also worked on M&A matters.