Strengthens Relationships in Home Improvement
and Health and Wellness Financing
STAMFORD, Conn., March 4,
2024 /PRNewswire/ -- Synchrony (NYSE: SYF) today
announced it completed its acquisition of Ally
Lending, the point of sale financing business for Ally
Financial (NYSE: ALLY) that includes $2.2 billion of loan receivables.*
Ally's loan portfolio includes relationships with nearly
2,500 merchant locations and supports more than 450,000 active
borrowers in home improvement services and healthcare. Through
this acquisition, Synchrony deepens its presence and reach in the
home improvement and health and wellness sectors including
high-growth specialty areas such as roofing, HVAC, and windows, as
well as in cosmetic, audiology, and dentistry.
The closing expands Synchrony's multi-product strategy by
extending its core revolving product to Ally's partners and speeds
the Company's ability to offer installment products to Synchrony's
merchants and contractors. Through this acquisition, Synchrony will
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. Further, the Ally
Lending health portfolio complements Synchrony's existing Health
and Wellness platform and extends Synchrony's reach in cosmetic,
audiology, and dentistry.
"We are pleased to welcome the Ally Lending team to our
Synchrony family. The combination of their industry knowledge,
flexible financing solutions and customer-focused mindset paired
with Synchrony's multi-product strategy will provide more choice to
our consumers and help our merchants grow," said Curtis Howse, CEO of Home & Auto at
Synchrony. "This is a significant and exciting growth opportunity
for Synchrony, and we look forward to using our expertise to scale
the business."
Synchrony expects this acquisition to be accretive to full year
2024 earnings per share, excluding the impact of the initial
reserve build for credit losses at acquisition. The acquisition is
expected to realize an attractive internal rate of return for
Synchrony with an approximate three-and-a-half-year tangible book
value earnback.
*Amount of loan receivables as of December 31, 2023.
About Synchrony
Synchrony (NYSE: SYF) is a premier consumer financial services
company delivering one of the industry's most complete
digitally-enabled product suites. Our experience, expertise and
scale encompass a broad spectrum of industries including digital,
health and wellness, retail, telecommunications, home, auto,
outdoor, pet and more. We have an established and diverse group of
national and regional retailers, local merchants, manufacturers,
buying groups, industry associations and healthcare service
providers, which we refer to as our "partners." We connect our
partners and consumers through our dynamic financial ecosystem and
provide them with a diverse set of financing solutions and
innovative digital capabilities to address their specific needs and
deliver seamless, omnichannel experiences. We offer the right
financing products to the right customers in their channel of
choice. For more information, visit www.synchrony.com.
Forward-Looking Statements
This press release includes forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements may be identified by words such as
"will," "expect, " or words of similar meaning. The forward-looking
statements convey our expectations, intentions, or forecasts
related to the completion of the Ally Lending acquisition, which
are based on management's assumptions and estimates, and are
subject to inherent uncertainties, risks and changes that are
difficult to predict. As a result, actual results could
differ materially from those indicated in these forward-looking
statements. For the reasons described above, we caution you against
relying on any forward-looking statements, which should also be
read in conjunction with our public filings, including under the
heading "Risk Factors Relating to Our Business" and "Risk Factors
Relating to Regulation" in the Company's Annual Report on Form 10-K
for the fiscal year ended December 31,
2023, as filed on February 8,
2024. Any forward-looking statement speaks only as of the
date on which it is made and we undertake no obligation to update
any forward-looking statement, except as otherwise may be required
by law.
Synchrony Communications:
Lisa Lanspery
lisa.lanspery@syf.com
Synchrony Investor Relations:
Kathryn Miller
kathryn.miller@syf.com
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SOURCE Synchrony Financial