GreenSky [NASDAQ: GSKY] to be Acquired by The Goldman Sachs

GreenSky, Inc. [NASDAQ: GSKY] shares have skyrocketed 44% during the pre-market trading session of Wednesday. The strong performance of the firm has indicated the positive reactions of the investors as Goldman Sachs has presented the firm with an acquisition offer. GSKY confirmed that it has inked an acquisition agreement with Goldman Sachs.

As per the acquisition agreement, GreenSky will be purchased by Goldman Sachs in an all-stock transaction worth nearly $2.24 billion. After Goldman Sachs offer of $2 billion, the firm immediately decided to accept the offer as this offer will be in the best interest of the firm. GreenSky, presently, has a total market capitalization of $1.42 billion at the time of writing.

Furthermore, this acquisition will be helpful for Goldman Sachs as the unique lending capabilities and market-leading merchant and consumer ecosystem of GreenSky will assist Goldman Sachs in speeding up the efforts to create the consumer banking platform of the future, assist tens of millions of customers manage their financial lives and drive higher, more hard-wearing returns.

In addition to this, the purchase will improve Goldman Sachs’ ability to offer consumers the opportunity to save, spend, borrow, and invest, and meet customers where they transact. Since its inception, GreenSky has offered simple and transparent home improvement financing solutions for nearly four million customers.

Financial Details  

Under the term of the agreement, GreenSky stockholders will get 0.03 shares of common stock of Goldman Sachs for each share of GreenSky Class A common stock. This signifies a per-share price for GreenSky Class A common stock of $12.11 and an implicit transaction value of nearly $2.24 billion based on the closing share price of Goldman Sachs common stock as of September 14, 2021.

As per the deal, GreenSky’s tax receivable agreement was revised to offer that no payments will be made in relation to or after the contract; these payments would have had an estimated value of $446 million or $2.41 per share.