David Zalik, founder and CEO of GreenSky.
Chris Hamilton | Green Sky
Goldman Sachs is buying digital lender GreenSky for $2.24 billion as investment bank turns more towards consumer finance.
The all-stock deal for GreenSky, named the largest fintech platform for home improvement loans in a release announcing the transaction, is expected to close by the first quarter of 2022, the companies said on Wednesday. GreenSky shares were up 44% in premarket trading before being discontinued.
“We were clear on Marcus’ goal of being the consumer banking platform of the future, and the acquisition of GreenSky advances that goal,” Goldman CEO David Solomon said in the broadcast. “GreenSky and his talented team have created an impressive, cloud-native platform that will enable Marcus to reach a new and active group of merchants and clients.”
The move helps Goldman step up in consumer finance, a huge opportunity for the wealthy outside of its historic realm such as investment banking, trading and wealth management. Goldman started retail banking with the Marcus loan brand five years ago and has since added partnerships with Apple, Jetblue and Amazon, as well as auto investing and personal finance.
The bank said the GreenSky deal expanded its customer base and gave GreenSky access to its network of more than 10,000 merchants.
This story is evolving. Please check back for updates.
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