Goldman Sachs to buy fintech company GreenSky for $ 2.2 billion

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Goldman Sachs is investing $ 2.2 billion to acquire GreenSky, a fintech company that provides quick and easy online loans. The investment bank is buying it to improve and expand its consumer finance business.

According to CNBC, Goldman Sachs has signed an all-stock deal with GreenSky, dubbed the largest online home improvement loan platform. It was revealed that the companies’ transactions will close sometime in the first quarter of 2022.

The buyout will help Goldman Sachs strengthen its consumer finance business. This provides a new way for the company to focus on non-investment banking and wealth management services for the large corporations it was originally known for.

The GreenSky acquisition is also a big improvement since the retail business started five years ago. It expanded within that time frame and few other services were offered, including personal finance and automated investing. And before GreenSky was added to its portfolio, it had already established partnerships with Amazon, Apple and Jetblue.

“Our goal was clear that Marcus would become the consumer banking platform of the future, and the acquisition of GreenSky further enhances that goal,” said David M. Solomon, chairman and chief executive officer of Goldman Sachs, in a press release. “GreenSky and his talented team have built an impressive, cloud-native platform that enables Marcus to reach a new and active group of dealers and customers and offer them a growing range of solutions. We welcome the GreenSky team to the Goldman Sachs family. “

Additionally, the New York City-based finance and investment bank said the deal with GreenSky will give the company access to its 10,000+ dealers in addition to expanding its customer base. Based on the agreement, GreenSky CEO David Zalik will join Goldman Sachs as one of the partners.

It has since been reported that Goldman Sachs actually had an eye on GreenSky for years. In fact, it was considering buying the Atlanta, Georgia-based fintech company in 2019, and preliminary talks have been going on, and apparently the talks didn’t come to a deal – as recently as this week. Eventually, with GreenSky on board, the bank will be able to provide better services to its customers in terms of saving, spending, borrowing or investing.

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