Global financial institution Goldman Sachs will purchase FinTech lending company GreenSky in an all-stock deal worth an estimated $2.24 billion, according to a Wednesday (Sept. 15) press release.
As part of the definitive agreement both companies entered into, GreenSky stockholders will receive 0.03 shares of Goldman Sachs common stock for each share of GreenSky Class A common stock. The per share price for GreenSky Class A common stock is $12.11. The merger is expected to close in the fourth quarter of 2021 or first quarter of 2022, according to the press release.
The boards of directors of both companies have authorized the transaction.
GreenSky, since its founding in 2006, has funded home improvement borrowing options for about 4 million customers and has financed more than $30 billion of business improvements for the healthcare, retail, and eCommerce industries. The Atlanta-based company enables retailers, healthcare providers and home contractors the ability to offer loans to their customers. The company sets itself apart from the competition in that it arranges financing for more than 16,000 merchants and service providers, while a network of banks fund the loans and keep them on their balance sheets.
Read more: Lending FinTech GreenSky Files For IPO
By acquiring GreenSky, Goldman Sachs can take advantage of the lender’s growing network of merchants as it looks to bolster its Marcus by Goldman Sachs banking platform, according to the release.
“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,” Goldman Sachs Chairman and CEO David M. Solomon said in the announcement. “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.”
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