Synchrony Financial yesterday announced it had acquired the point-of-sale business from Ally Financial, specifically targeting the home improvement sector. The acquisition adds $2.2 billion of receivables to Synchrony’s portfolio and improves its position and exposure in the FinTech space.
The acquisition will allow Synchrony to now offer revolving credit and installment loans at the point-of-sale in the home improvement industry, such as though roofing, HVAC, and window installation companies. Ally was working with 2,500 merchant locations and 450,000 active borrowers across the country.
Synchrony is known for its work in the consumer financial services industry, working with retailers, health systems, and more.
“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,” said Brian Doubles, the president and chief executive officer of Synchrony, in a statement. “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.”
