From: FinTech Global
Back in February, technology-enabled finance lender and compliance solution CardWorks announced it would be acquired by digital financial services firm Ally Financial. However, now those plans have been cancelled.
The two ventures said that they had mutually agreed to terminate their merger agreement because the ongoing coronavirus pandemic has made the economy unpredictable.
Neither party will be required to pay the other a termination fee or break-up fee as a result of the mutual decision to terminate the agreement. The termination was approved by the boards of directors of both companies.
“After careful consideration [we] concluded that it would be in the best interest of our customers and our stakeholders, to terminate the agreement,” said Don Berman founder, chairman and CEO of CardWorks. “CardWorks has proven through previous recessions to be a great company in difficult times. CardWorks is in an exceptionally strong financial position and our long-term strategic priorities remain intact.
“Each of our business lines continues to perform extremely well during these challenging and uncertain times. We have been focused on the well-being of our people and our communities during our entire 32-year history, including through these difficult events of 2020. As a private company we are excited to continue to grow our unique business and execute on our long term strategic initiatives while delighting our clients and customers.”
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