(Bloomberg) — Ally Financial Inc. reached a deal to offload its credit-card unit to CardWorks Inc., bowing out of a business it entered just over three years ago.

CardWorks agreed to buy the business, including a $2.3 billion credit-card loan portfolio with 1.3 million active cardholders as of the end of last year, Ally said. Additional terms of the deal weren’t disclosed in a Wednesday statement, but Ally paid around $750 million for the business in 2021. Bloomberg reported on the pending sale in November.

Roles have reversed from when Ally sought to acquire CardWorks outright in 2020 for $2.65 billion in cash and stock at the time. That deal, however, fell apart during the pandemic.

“We have a good card business, but we see the best opportunities are in areas where we’ve demonstrated competitive advantage, attractive returns and the scale necessary to succeed,” Ally Chief Executive Officer Michael Rhodes said in an interview. “Our core businesses are our dealer financial services, corporate finance and deposits.”

The Detroit-based lender has attempted to streamline the company over the past few months, by cutting jobs, ending mortgage originations and tightening its credit underwriting to stanch charge-offs.

The environment from when Ally acquired the credit-card business has shifted “quite dramatically,” Rhodes said. He also said the “vast majority” of Ally employees associated with the business will move over to CardWorks.

The sale is likely to close this year, according to the statement. JPMorgan Chase & Co. provided financial advice to Ally, and Sullivan & Cromwell LLP served as legal adviser. Cravath, Swaine & Moore LLP served as CardWorks’ legal adviser.

“This portfolio and platform acquisition is an exciting step in the expansion of our near-prime credit card business, and a natural fit for us,” CardWorks CEO Dan Pillemer said in the statement.

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