Ally Financial closes acquisition of credit card platform Fair Square Financial

Rhea-AI Summary

Ally Financial Inc. (NYSE: ALLY) has completed its acquisition of Fair Square Financial, a digital credit card company. This strategic move aims to enhance Ally's consumer product offerings and align with its goal to be a top digital bank. Fair Square, founded in 2016, serves approximately 693,000 cardholders with $816 million in loan balances. The acquisition is expected to drive growth and improve customer experience through Fair Square's transparent credit offerings. Ally's CEO emphasized the importance of this acquisition for future growth.

Positive

• Acquisition of Fair Square enhances Ally's consumer product suite.
• Fair Square's 693,000 cardholders and $816 million in loan balances bolster Ally's portfolio.
• The move aligns with Ally's strategy to strengthen its position as a digital bank.

Negative

• None.

CHARLOTTE, N.C., Dec. 1, 2021 /PRNewswire/ -- Ally Financial Inc. (NYSE: ALLY) today announced it has closed its acquisition of Fair Square Financial, a digital-first credit card company.   

"The addition of Fair Square and its credit card offerings will enhance our suite of consumer products and aligns with our long-term strategy to be the leading full-service digital-bank," said Ally Chief Executive Officer Jeffrey J. Brown.

Fair Square is a customer-centric, digital-first credit card company generating strong growth and solid credit results since being founded in 2016.

"Fair Square was built on the premise of providing fair and transparent credit card offerings," said Fair Square Chief Executive Officer Rob Habgood. "We are excited to continue delivering compelling products with growing momentum as we join the Ally team."

The Fair Square team brings 86 employees to Ally, alongside approximately 693,000 cardholders and $816 million in loan balances.

Citi served as lead financial advisor, Goldman Sachs & Co. LLC also served as a financial advisor and Sullivan & Cromwell LLP served as legal counsel to Ally. J.P. Morgan served as exclusive financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to Fair Square Financial.

About Fair Square Financial
Fair Square Financial (FSF), headquartered in Wilmington, DE, is an indirect, wholly owned subsidiary of Ally Financial Inc. Established in 2016, FSF is focused on providing credit card products through leading-edge technology and proprietary and analytics-based underwriting. FSF products and experiences are built for and around the customer through straightforward products, no-nonsense tools and 24/7 U.S.-based support under the Ollo brand. For more information, visit www.ollocard.com.

About Ally Financial
Ally Financial Inc. (NYSE: ALLY) is a digital financial services company committed to its promise to "Do It Right" for its consumer, commercial and corporate customers. Ally is composed of an industry-leading independent auto finance and insurance operation, an award-winning digital direct bank (Ally Bank, Member FDIC and Equal Housing Lender, which offers mortgage lending, point-of-sale personal lending, and a variety of deposit and other banking products), a corporate finance business for equity sponsors and middle-market companies, and securities brokerage and investment advisory services. A relentless ally for all things money, Ally helps people save well and earn well, so they can spend for what matters. For more information, please visit www.ally.com and follow @allyfinancial.

For more information and disclosures about Ally, visit https://www.ally.com/#disclosures.

For further images and news on Ally, please visit https://media.ally.com.

Contacts:

Daniel Eller
Ally Investor Relations
704-444-5216
daniel.eller@ally.com

Jillian Palash
Ally Communications (Media)
704-644-6201
Jillian.palash@ally.com

 

View original content:https://www.prnewswire.com/news-releases/ally-financial-closes-acquisition-of-credit-card-platform-fair-square-financial-301435409.html

SOURCE Ally Financial

FAQ

What is the significance of Ally's acquisition of Fair Square Financial?

The acquisition enhances Ally's consumer product offerings and supports its strategy to be a leading digital bank.

How many cardholders does Fair Square Financial have?

Fair Square Financial serves approximately 693,000 cardholders.

What are the loan balances associated with Fair Square Financial?

Fair Square Financial has approximately $816 million in loan balances.

When did Ally Financial announce the acquisition of Fair Square Financial?

Ally Financial announced the acquisition on December 1, 2021.

Who is the CEO of Ally Financial?

The CEO of Ally Financial is Jeffrey J. Brown.