Goldman Sachs Group has entered into a definitive agreement with GreenSky to acquire the latter in an all-stock deal valued at ~$2.24bn. GreenSky, the largest fintech platform for home improvement consumer loan originations, helps banks to provide loans to super-prime and prime consumers. It currently services a $9bn loan portfolio and supports a growing network of over 10,000 merchants. It has helped ~4mn consumers to finance more than $30bn since its inception in 2006. GreenSky’s ecosystem will provide synergies with products of Marcus by Goldman Sachs to create a robust consumer banking platform. The deal, expected to close by 4Q2021 or 1Q2022, has already got the approval from Boards of Directors of both the companies and is subject to regulatory approvals and approval by GreenSky stockholders. As part of the agreement, each GreenSky equity holder will receive 0.03 shares of Goldman Sachs for each share of GreenSky resulting in an implied transaction value of ~$2.24bn. David M. Solomon, Chairman and CEO of Goldman Sachs 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,” while adding, “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. We welcome the GreenSky team to the Goldman Sachs family.”
Goldman Sachs’ 5.75% 2022s were stable at 101.95 and it’s 4% Perps were up 0.13 to trade at 100.63.
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