- Goldman Sachs Group Inc GS agreed to acquire specialty lender GreenSky Inc GSKY for $2.24 billion.
- GreenSky stockholders will receive 0.03 shares of Goldman Sachs common stock for each Class A share.
- The deal value represents roughly $12.11 a share for GreenSky, implying a 55.9% premium to GreenSky's September 14 closing price of $7.77.
- "Our goal is to build a real banking platform of the future," Goldman CEO David Solomon said in an interview, the Wall Street Journal reports. "This moves us along in that journey."
- Solomon said that David Zalik, GreenSky's founder and largest shareholder, will join Goldman as a partner.
- GreenSky arranges loans for big one-time purchases like construction projects or cosmetic surgery. It pitched itself as a technology platform connecting consumers who sought major purchases and merchants eager to increase sales.
- However, the stock lost 70% from its highs on rising payment failures which discouraged banks from lending. Additionally, supply-chain issues and labor shortages hampered the renovation projects, while stay-at-home orders halted elective medical procedures.
- The boards of Goldman Sachs and GreenSky have approved the transaction. GreenSky is part of the "buy now, pay later" wave of companies.
- Price Action: GSKY shares traded higher by 52.40% at $11.84 in the premarket session on the last check Wednesday.
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