By GREGORY ZELLER //
The strategic acquisition of a Florida-based data and operations-support expert will give a veteran Long Island financial-management firm new flexibility.
Woodbury-based CardWorks Inc. has announced the acquisition of Dataline Systems, a private provider of outsourced business processes and financial-services operations. Those specialized abilities fit right in at CardWorks, a circa-1987 startup that today ranks among the nation’s largest private providers of credit-card support services and installment-loan products.
While it was wholly owned subsidiary CardWorks Servicing that actually made the acquisition, the value of adding the tools and techniques of tried-and true Dataline Systems – which launched in 1986 and has built a large and loyal following – is clear across the CardWorks corporate structure, according to President and CEO Dan Pillemer.
Dan Pillemer: Do the right thing.
“This transaction brings together two companies that offer best-in-class services that are highly complementary, run on values inspired by their founders,” Pillemer said this week. “Importantly, (they) have similar people-centric cultures focused on doing the right thing while putting customers first.”
Terms of the deal were not disclosed. But CardWorks Servicing – which provides end-to-end operational functions for credit card transactions and captive financing processes, such as installment loans on automobile purchases – will beef up Dataline Systems’ technological resources and operational capabilities.
Meanwhile, Dataline – which backs up its financial-services support with advanced data-management resources – will offer new options to its existing customers, welcome new clients through the CardWorks pipeline and generate a slate of new client opportunities.
CardWorks is the perfect place for the veteran Florida firm to land, according to Dataline Systems founder Collin York, who praised a new corporate parent “that is committed to doing the right thing.”
“For nearly 37 years, Dataline has partnered with financial-services companies to design, develop and implement customized business-process outsourcing and financial-services operations support solutions … enabled by optimized data management,” York said in a statement. “Our team could not be more excited about becoming part of the CardWorks family, where we see energy, excitement (and) enthusiasm.”
The acquisition, which became official Jan. 1, also signals a strategic shift for CardWorks, which is riding high – Pillemer noted “a strong balance sheet and capital levels” – and is now focusing on what the Woodbury company called “inorganic growth opportunities.”
“We are excited to explore acquisitions of companies, assets or capabilities that expand CardWorks’ businesses and are in line with our vision for the future,” Pillemer added. “Particularly if we are lucky enough to find teams as talented as the Dataline team.”
