The deal is expected to benefit Goldman Sachs from GreenSky’s differentiated lending capabilities, along with merchant and consumer ecosystem to support its efforts in developing the consumer banking platform of the future
Goldman Sachs Tower in Jersey City, New Jersey. (Credit: Beyond My Ken/Wikipedia.)
Goldman Sachs has agreed to acquire Atlanta-based fintech platform GreenSky in an all-stock transaction worth around $2.24bn.
Under the terms of the agreement, GreenSky stockholders are expected to receive 0.03 shares of common stock of Goldman Sachs for each share of GreenSky common stock held.
With a network of more than 10,000 merchants, GreenSky offers simple and transparent home improvement financing solutions for nearly four million customers.
With the acquisition, Goldman Sachs is said to benefit from GreenSky’s differentiated lending capabilities, along with merchant and consumer ecosystem to develop the consumer banking platform of the future.
Also, it is expected to enhance the investment bank’s capabilities to help its consumers save, spend, borrow and invest, and meet customers where they transact.
Goldman Sachs chairman and CEO David M 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.”
In relation with the deal, GreenSky’s tax receivable agreement was amended to prevent payments associated with the transaction, valuing around $446m or $2.41 per share.
The transaction is expected to close between the fourth quarter of 2021 and first quarter of 2022.
Closing of the transaction is subject to GreenSky stockholders’ approval, and the receipt of required regulatory approvals, along with other customary closing conditions.
Goldman Sachs served as financial advisor and Sullivan & Cromwell as legal counsel to Goldman Sachs, in relation with the transaction.
J.P. Morgan Securities and Financial Technology Partners served as financial advisors, and Cravath, Swaine & Moore and Troutman Pepper Hamilton Sanders as legal counsel to GreenSky.
GreenSky chief executive officer David Zalik said: “The GreenSky team and I are thrilled to be joining Goldman Sachs. 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.”
In a separate development, Goldman Sachs has teamed up with investment bank, brokerage and advisory firm Loop Capital Markets to advance racial equity.
The partnership will offer funding for educational and career development for Black women in science, technology, engineering, mathematics (STEM) and related fields.