Ally Financial has purchased CardWorks for $1.35bn in cash and $1.3bn in stock.
Cardworks is a non prime credit card and consumer finance lender with $4.7bn in assets.
The deal is set to close in Q3.
Following the deal, Ally will serve over 11mn customers across the US.
What does this mean?
Ally originated as an auto finance company, but has expanded into other services such as online banking. The deal will enable Ally to enter the credit card and merchant acquiring sectors.