Goldman Sachs’s $2.24bn Acquisition of Greensky

By Luc Roberts and Priyanshu Srivastava (Warwick), and Abilash Prabhakaran (MIT)

 

Overview of the deal


Acquirer: Goldman Sachs Group Inc.

Target: GreenSky Inc.

Total Transaction Size: $2.24bn

Closed date: Q4 2021 - Q1 2022 (Expected)

Target advisor: J.P.Morgan Securities LLC, FT Partners LP, Piper Sandler


The core aim of Goldman’s $2.24 billion acquisition of Greensky is to advance Marcus, the investment bank’s online-only consumer banking offering. Greensky is a financial technology company that has provided $30 billion worth of commerce financial solutions through installment loans and revolving credit products, to its four million customers. Greensky’s growing network and expansion of unique product capabilities proved to be an imperative target for Goldman Sachs, and aligns with their aim of making Marcus the leading consumer banking platform, by providing Greensky’s active client base and point-of-sale payment solutions. The acquisition is also in line with Goldman Sachs’ long term strategy: offering simple solutions to drive durable returns. The all-stock transaction will provide GreenSky shareholders with 0.03 Goldman Sachs common shares for each common share of GreenSky, and is expected to close by the fourth quarter of 2021 to first quarter of 2022.


“We have been clear in our aspiration for Marcus to become the consumer banking platform of the future, and the acquisition of GreenSky advances this goal” - David Solomon, Goldman Sachs CEO

Company Details (Acquirer - Goldman Sachs Group Inc.)


Goldman Sachs is a financial powerhouse recognized for its financial holding capabilities across investment banking, commercial banking, securities and investment management services. Today, the firm operates in over 35 countries with aims to strengthen existing business, diversify launch with new product mix and attain better operating efficiency.


Founded in 1989, headquartered in New York, United States

CEO: David Solomon

Number of employees: 40,800

Market Cap: $138.9bn (as of 20/10/2021)

EV: $930.9bn

LTM Revenue: $61.3bn

LTM EBITDA: $14.4bn

LTM EV/Revenue: 12.9x

LTM EV/EBITDA: 55.1x


Company Details (Target - GreenSky Inc.)


Greensky enables home improvement and healthcare firms offer financing solutions to their customers. Through the Greensky app, customers can get approved for credit and pay for services in installments.