Goldman Sachs on Wednesday agreed to buy GreenSky, a fintech platform that provides home improvement loans, in a deal worth $ 2.24 billion, while the Wall Street bank is looking to develop its consumer unit.
Atlanta-based GreenSky, which went public in 2018 at a valuation of about $ 4 billion, has provided home improvement loans to about 4 million customers since its inception in 2006.
Digital businesses that attract new customers or unique technologies have become more attractive as the pandemic increases the importance of online business, while the role of bank branches diminishes.
The deal involves a price of $ 12.11 for each GreenSky share, which is a 56% premium over the company’s closing price on Tuesday.
Its purchase will further strengthen Goldman’s consumer banking unit, Marcus, named after one of the bank’s founders and a key part of CEO David Solomon’s plan to reduce Goldman’s dependence on it. volatile income from trading and investment banking.
“We have clearly expressed our aspiration for Marcus to become the consumer banking platform of the future, and the acquisition of GreenSky advances that goal,” Solomon said in a statement.
Solomon aims to build businesses with predictable revenues, such as consumer banking and mass-market wealth management, which most of Goldman Sach’s main rivals now own.
Reuters reported earlier this year that Goldman was considering acquisitions to expand Marcus after the Wall Street company reported slow growth in loans and deposits at the company last year in the wake of the COVID-19 pandemic .
GreenSky connects banks with clients looking for financing through an app.
The deal, which has been approved by the boards of directors of both companies and includes a tax adjustment of $ 446 million, is expected to be completed in the fourth quarter of 2021 or the first quarter of next year.