Hinshaw’s legal team, led by partners Timothy Sullivan, Kyle Fonjemie, and Ofonedu-lme served as transaction counsel to CWS on the deal. As a leading consumer firm, they service their consumer and small business loan clients across the credit spectrum, from super-prime to non-prime, and provide comprehensive support to bank and non-bank lenders in the United States. In a press release, Matt Berman, Head of the Servicing Business at CWS stated that "Dataline has unique capabilities in payment disbursement services, data reporting and analytics, and business process automation… As such, the acquisition will further strengthen our end-to-end credit card and installment loan portfolio management and servicing offerings for banks, credit unions, non-bank lenders, and asset managers."ĬWS is one of the largest privately held providers of end-to-end operational servicing and support functions for credit card and installment loan products in North America. Upon closing, Dataline became a wholly-owned subsidiary of CWS. The closing of the transaction was effective January 1, 2023. Sign up now for the ATM Marketplace newsletter and get the top stories delivered straight to your inbox.Hinshaw congratulates firm client, CardWorks Servicing, LLC (CWS), on recently completing its acquisition of Dataline Systems, LLC (Dataline), a privately-held provider of business process outsourcing and financial services operations support. KEEP UP WITH ATM AND DIGITAL BANKING NEWS AND TRENDS "As such, the acquisition will further strengthen our end-to-end credit card and installment loan portfolio management and servicing offerings for banks, credit unions, non-bank lenders, and asset managers." CardWorks will offer its resources and operational support to Dataline, which will in turn grow its business with clients in both companies. We provide end-to-end credit card and installment loan operations, including 24×7 live agent customer care, digital self-service, dispute and fraud prevention. "Dataline has unique capabilities in payment disbursement services, data reporting and analytics, and business process automation, each of which are additive to our existing CWS capabilities," Matt Berman, head of servicing business at CardWorks, said in the release. In this deal, it appears that Ally which saw its stock price drop post deal opted not to "fill" the deal per reports.ĬardWorks Servicing LLC, an outsourcing support services for credit cards and installment loan products, has acquired Dataline Systems LLC, a business process outsourcing and financial services operations support company, according to a press release. Such an adjustment was said to potentially arise if Ally’s stock price were to decline by more than 15% in which case a kill-or-fill termination right would be exercised in which Ally can elect to fill it by issuing additional stock. According to the acquisition announcement, the share number of the deal was based on Ally’s closing stock price of $32.85 on February 14, and the price was based on Ally’s forecast of closing equity and other adjustments, excluding any possible kill-or-fill adjustment. This was due in part to the structure of the deal. However, on June 24, 2020, both parties announced that the deal had been called off. On February 18, 2020, CardWorks announced it was being acquired by Ally Financial for $2.65B. Carson Smithfield provides post-charge-off debt recovery services. CardWorks Servicing is an independent servicer of nationally-branded Visa®/Mastercard® cards, secured cards, and unsecured installment loans. CardWorks provides servicing operations and portfolio management to bank and non-bank consumer and small business lenders through CardWorks Servicing and Carson Smithfield. CardWorks is a consumer lender, merchant acquiring bank, and loan servicer to regulated financial institutions and non-bank lenders.
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