Goldman Sachs has signed a definitive agreement to acquire GreenSky, which offer consumer loans, in an all-stock transaction valued at approximately $2.24bn.
Under the agreement, the lender will offer 0.03 shares of common stock for each share of GreenSky Class A common stock held, which amounts to $12.11 a share.
Through the acquisition, Goldman Sachs plans to expand its Marcus business by leveraging GreenSky’s lending capabilities and merchant and consumer network to create a consumer banking platform.
The platform facilitates loans for items like home improvement projects and medical procedures.
GreenSky allows its partners to offer financing solutions at the point of sale, driving increased sales volume.
The banks use GreenSky’s technology to provide loans to super-prime and prime consumers across the US and it claims to service a loan portfolio of $9bn.
Goldman Sachs chairman and CEO David Solomon said: “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.”
GreenSky CEO David Zalik said: “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 are excited to continue delivering innovative point-of-sale payment solutions for our merchant partners and their customers on an accelerated basis.”
The deal is subject to regulatory approval and is close in the fourth quarter of 2021 or the first quarter of 2022.
Furthermore, payment platform Form3 has announced its Series C investment funding of $160m (£115m). It was led by Goldman Sachs Asset Management and included participation from existing investors. The company’s total fundraising is now at $220m (£159m).
Form3’s other investors include Lloyds Banking Group, Nationwide Building Society, Barclays, Mastercard, 83North and Draper Esprit.