07:43 AM EST, 01/22/2025 (MT Newswires) -- Ally Financial ( ALLY ) said Wednesday it has agreed to sell its credit card business to CardWorks.

Financial terms of the deal were not disclosed.

The deal is expected to allow Ally to be more focused on its core businesses. Meanwhile, it is expected to enhance CardWorks' position as a credit card issuer and services.

The transaction includes a $2.3 billion credit card receivables portfolio and 1.3 million active cardholders as of Dec. 31.

CardWorks and its subsidiary Merrick Bank will work with Ally to ensure a smooth transition for customers and employees, the company said.

The deal is set to close this year, subject to the completion of customary closing conditions.