Goldman Sachs / GreenSky 2022
Goldman Sachs acquired GreenSky for $2.2B on September 15, 2021.
- Target
- GreenSky
- Acquirer
- Goldman Sachs
- Deal value
- $2.2B
- Deal type
- Stock
- Announced
- September 15, 2021
- Sub-sector
- Lending
Transaction overview
- Goldman Sachs announced the acquisition of GreenSky on September 15, 2021, in an all-stock deal valued at approximately $2.24 billion.
- GreenSky shareholders received Goldman Sachs stock at a fixed exchange ratio implying roughly $12.11 per GreenSky share.
- The deal closed on March 29, 2022, following regulatory and shareholder approvals.
- GreenSky operated a point-of-sale lending platform connecting consumers, merchants, and banks, focused on home improvement and healthcare financing.
- GreenSky had originated over $30 billion in loans since its founding and served more than 10,000 merchant partners at announcement.
- Goldman Sachs acquired GreenSky to accelerate growth of Marcus, its consumer banking division, by adding a merchant-distributed lending channel.
- Goldman Sachs is a global investment bank and financial services firm with approximately $2.4 trillion in assets under supervision as of mid-2021.
Why it matters
- The acquisition marked one of the largest purchases of a fintech lender by a major U.S. bank, signaling Wall Street's push into point-of-sale consumer credit.
- GreenSky's merchant network gave Goldman a distributed origination channel that Marcus, built on direct-to-consumer lending, had not previously had.
Strategic rationale
Goldman buys point-of-sale home improvement lender to extend Marcus consumer franchise, later divested to Sixth Street consortium in 2023.
Deal terms & multiples
About GreenSky
GreenSky is an Atlanta-based financial technology company that operates a point-of-sale lending platform. The platform connects consumers seeking financing with a network of merchants—primarily in home improvement, solar, and healthcare—and funds loans through bank partners rather than holding them on its own balance sheet. GreenSky went public on the Nasdaq in May 2018 under the ticker GSKY, raising approximately $874 million in its IPO. By the time of the Goldman announcement, the company had facilitated more than $30 billion in loan originations since inception.
- Founded
- 2006
- HQ
- United States
- Prior funding
- Raised approximately $874 million in May 2018 IPO on Nasdaq; prior private funding included investment from TPG.
- Key metric
- Over $30 billion in cumulative loan originations since founding, as of announcement in September 2021.
About Goldman Sachs NYSE: GS
Goldman Sachs is a New York-based global investment bank founded in 1869 and listed on the New York Stock Exchange under the ticker GS. The firm operates across investment banking, global markets, asset management, and consumer and wealth management. Its consumer division, Marcus by Goldman Sachs, launched in 2016 and had grown to several billion dollars in loan balances and deposits by 2021. Goldman had been expanding Marcus through organic growth and acquisitions, including the purchase of United Capital in 2019.
- Founded
- 1869
- Ticker
- NYSE: GS
Frequently asked questions
How much did Goldman Sachs pay for GreenSky?
Goldman Sachs agreed to pay approximately $2.24 billion in an all-stock deal, implying roughly $12.11 per GreenSky share at announcement.
When did the Goldman Sachs and GreenSky deal close?
The transaction closed on March 29, 2022, about six months after the September 15, 2021 announcement.
Why did Goldman Sachs buy GreenSky?
Goldman wanted to add a merchant-distributed point-of-sale lending channel to Marcus, its consumer banking unit, which had relied on direct-to-consumer origination.
What does GreenSky do?
GreenSky runs a platform that connects consumers with financing at the point of sale, primarily for home improvement and healthcare, funding loans through bank partners.
Was GreenSky a public company before the acquisition?
Yes. GreenSky listed on the Nasdaq in May 2018 under the ticker GSKY, raising approximately $874 million in its IPO.
What happened to GreenSky after Goldman Sachs acquired it?
Goldman Sachs later sold GreenSky in 2023 as part of a broader retreat from its consumer banking ambitions, offloading the business to a consortium of investors.
Sources
- goldmansachs.com /media-relations/press-releases/2021/goldman-sachs-to-acquire-greensky.html