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Goldman Acquiring Fintech Firm GreenSky For $2.24B

By John F. Heerdink, Jr.

As per reports, Goldman Sachs Group Inc. (GS) is buying Atlanta-based, GreenSky Inc. for about $2.24 billion, extending its Marcus consumer-banking platform, a company offering payment plans to customers with home-improvement projects or health-care needs. The bank will pay 0.03 share of its common stock for each share of GreenSky, which works out to about $12.11 a share.

Goldman was one of the lead underwriters on its initial offering at $23 a share when GreenSky went public in 2018. Consumers especially younger people have flocked in recent years to buy-now, pay-later programs offered by companies including Affirm Holdings Inc. and Afterpay Ltd. The bank’s acquisition of GreenSky, adds a fintech firm that works with more than 10,000 merchants to offer payment options to their customers.

“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,” stated Goldman Chief Executive Officer David Solomon.

The bank’s plan for expanding its Marcus business apparently includes attracting new customers to its mobile app and core offerings such as savings accounts, and unsecured loans, in addition to making a push to have its services reside inside other platforms and corporations, similar to its credit card tie-up with Apple.  The boards of both companies have approved the transaction. The deal is expected to close in the fourth quarter of this year or the first quarter of next year.

 

The Goldman Sachs Group, Inc. (GS) is one of the world’s leading investment bankers & also a securities and investment management firm that offers a wide range of financial services with a diversified client base. To learn more about The Goldman Sachs Group, Inc. (GS) and to continue to track its progress please visit the Vista Partners Goldman Sachs Group, Inc. (GS), Coverage Page

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(Read Original Story: Goldman to Buy GreenSky for $2.24 Billion for Payment Plans in Bloomberg)


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