Synchrony amplifies FinTech footprint with latest acquisition

Synchrony amplifies FinTech footprint with latest acquisition

Synchrony, a premier consumer financial services company, and Ally Financial, a leader in digital financial services, today announced a definitive agreement for Synchrony to acquire Ally’s point-of-sale financing business.

The deal includes a $2.2bn portfolio of loan receivables, establishing a new era of financial services in key market sectors.

This strategic acquisition positions Synchrony to deliver a differentiated solution in the FinTech industry. It notably enhances Synchrony’s offering by combining revolving credit and installment loans at the point-of-sale, specifically targeting the home improvement sector.

This expansion aligns with Synchrony’s multi-product strategy, broadening its scope to include Ally Lending’s merchant base and extending its reach into high-growth specialty areas like roofing, HVAC, and windows. Furthermore, the inclusion of the Ally Lending health portfolio augments Synchrony’s existing Health and Wellness platform, expanding its footprint in cosmetic, audiology, and dentistry services.

Synchrony is a trailblazer in the consumer financial services market, renowned for its rich portfolio of customized credit programs for retailers, health systems, and more, fostering deep client loyalty. Ally Financial, distinguished for its digital financial services, has been a key player in the market, offering an array of services including banking, auto finance, and insurance through Ally Insurance.

Synchrony’s acquisition of Ally’s point-of-sale financing business is not just a transaction but a strategic move to fuse revolving credit and installment loan services, propelling Synchrony into new market territories. This deal is expected to bolster Synchrony’s multi-product strategy, granting access to nearly 2,500 Ally Lending merchant locations and enhancing its position in the home improvement and health sectors.

Synchrony President and CEO Brian Doubles said, “This deal represents a significant and exciting growth opportunity for Synchrony – it’s a strong strategic fit that will unlock value and operational efficiency by integrating products and teams in our expanding platforms of home improvement and health and wellness.

“This accretive acquisition enhances Synchrony’s position by offering our multi-product portfolio to nearly 2,500 Ally Lending merchant locations, and enables us to achieve attractive economies of scale while further diversifying our merchant base.”

Ally Financial Chief Executive Officer Jeff (JB) Brown said, “Today’s agreement to sell Ally Lending is part of a broader initiative to invest resources in growing scale businesses and strengthening relationships with dealer customers and consumers. This transaction allows us to continue to be disciplined in allocating capital to optimize risk-adjusted returns as we manage through a dynamic operating environment.”

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