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Synchrony and Ally Financial Inc., a pair of major consumer financial services companies, have entered into an agreement for Synchrony to acquire Ally’s point-of-sale financing business, a deal that will allow the Stamford, Connecticut-based Synchrony to expand its reach in specialty areas that include roofing, HVAC and windows, the companies announced.
The acquisition, according to Synchrony officials, will enable the company to extend its revolving credit and promotional financing products to Ally Lending’s merchants, and “create a differentiated solution in the industry, simultaneously offering both revolving credit and installment loans at the point-of-sale in the home improvement vertical.”
Ally Lending’s portfolio includes relationships with nearly 2,500 merchant locations and supports more than 450,000 active borrowers in home-improvement services,” corporate officials added.
“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 Synchrony President and CEO Brian Doubles.
The transaction is expected to close in the first quarter of 2024, subject to the completion of customary closing conditions, the companies said. QR