Goldman Sachs buying GreenSky for $2.2 billion

GreenSky Inc.
on Wednesday confirmed a report by The Wall Street Journal that the specialty finance company agreed to be acquired by Goldman Sachs Group Inc.
for $2.2 billion. Goldman plans to pay about $12 a share in stock for GreenSky, which sells loans for consumer purchases such as construction projects or cosmetic surgery and works with merchants ranging from Home Depot Inc. to independent doctors and dentists. Its selling point is that its loans are cheaper and more responsible alternatives to credit cards, the newspaper reported. Goldman Sachs CEO David Solomon told the WSJ the deal will help the bank’s push into Main Street lending and to “build a real banking platform of the future.” The price amounts to a 55% premium to GreenSky’s Tuesday closing price and includes a $445 million tax adjustment. The stock is already up about 68% so far this year compared to a 27% rise by the SPDR Financial Select ETF