CompuCredit Corporation (NASDAQ: CCRT) announced today that it has signed a definitive agreement to acquire CardWorks, Inc.
Based in Woodbury, New York, CardWorks is a privately held issuer and third-party servicer of consumer credit cards. The acquisition is subject to certain closing conditions, including regulatory approval.
CardWorks is the parent company of two wholly owned subsidiaries, Merrick Bank and Cardholder Management Services (CMS). Merrick Bank is a premier issuer of credit cards with approximately $700 million in assets and serving approximately 785,000 cardholders. CMS delivers customized bankcard servicing to prime and non-prime card issuers, including customer service and collection solutions.
"This acquisition is an extraordinary opportunity for CompuCredit and our shareholders," explained David G. Hanna, Chairman and CEO of CompuCredit. "CardWorks brings with it an outstanding and well-respected management team, along with a variety of new products and business lines that will generate substantial shareholder value and deliver immediate revenues and earnings for us upon our expected completion of the transaction late in the fourth quarter of this year or early next year."
Donald M. Berman, Chairman and CEO of CardWorks added, "This acquisition is a perfect match for both CompuCredit and ourselves. We consider both CompuCredit and ourselves to be world-class providers of credit card and MasterCard/VISA card-related products, and together we will be a premier third-party servicer for the credit card markets. CompuCredit's additional resources and expertise also will help to facilitate growth throughout CardWorks' businesses."