The financial services major aims to create a compelling banking platform positioned for significant growth by aligning the capabilities of GreenSky with the products of Marcus by Goldman Sachs
Goldman Sachs has agreed to acquire GreenSky, a US-based fintech platform for home improvement consumer loan originations, for nearly $2.24bn in an all-stock deal.
Headquartered in Atlanta, GreenSky is said to have offered home improvement financing solutions for close to four million customers since its founding in 2006.
The fintech company has a network of more than 10,000 merchants. It helps the merchants expedite their business by integrating a seamless financing experience into their commerce flow.
Goldman Sachs said that the acquisition will enable it to create a compelling banking platform positioned for significant growth. For this, the group will align the capabilities of GreenSky with the products of Marcus by Goldman Sachs, an online-only bank offering.
Marcus by Goldman Sachs provides no-fee, unsecured personal loans, an online savings account, and certificates of deposit. Currently, the online offering is available in the US and the UK.
Goldman Sachs chairman and CEO David Solomon said: “We have been clear in our aspiration for Marcus to become the consumer banking platform of the future, and the acquisition of GreenSky advances this goal.
“GreenSky and its talented team have built an impressive, cloud-native platform that will allow Marcus to reach a new and active set of merchants and customers and provide them with an expanding set of solutions.”
As per the terms of the deal, GreenSky’s shareholders will be issued 0.03 shares of Goldman Sachs for each share of GreenSky’s Class A common stock.
The share exchange ratio represents a per share price of $12.11 for each of the GreenSky shares.
GreenSky CEO David Zalik said: “From GreenSky’s inception, our mission has been to deliver exceptional value helping businesses grow and delight their customers.
“In combination with Goldman Sachs, we’re excited to continue delivering innovative point-of-sale payment solutions for our merchant partners and their customers on an accelerated basis.”
The deal, which is subject to the approval of GreenSky’s shareholders, regulatory approvals, and other customary closing conditions, is expected to close in Q4 2021 or Q1 2022.