Ally Bank Went to Synchrony Bank in Major Deal

Ally Bank has made a significant move by acquiring Synchrony Bank in a major deal. This acquisition is a huge step for Ally Bank, allowing it to expand its services and offerings to customers.

Synchrony Bank, a leading provider of consumer finance, will now be a part of Ally Bank's operations. This acquisition is expected to bring significant benefits to both companies.

The deal is expected to be completed in the coming months, pending regulatory approvals.

Synchrony has completed its purchase of Ally Lending, Ally Financial's point-of-sale (POS) financing business.

The deal includes $2.2 billion of loan receivables and a loan portfolio that supports over 450,000 active borrowers in home improvement services and healthcare.

Synchrony's entry into the POS financing space gives it a further foothold with consumers beyond its credit card offerings.

Synchrony's borrowers show VantageScore credit scores, and 73% of the card portfolio score 651 or higher.

60% of consumers used an installment plan to pay for consumer products at some point in the prior 12 months.

Broaden your view: Ally Bank Credit Card Credit Score

The acquisition expands Synchrony's presence and reach in the home improvement and health and wellness sectors.

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.

Synchrony expects this acquisition to be accretive to full year 2024 earnings per share.

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.

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Synchrony has completed its purchase of Ally Lending, a point-of-sale financing business, for $2.2 billion.

The acquisition includes $2.2 billion of loan receivables and a loan portfolio that supports over 450,000 active borrowers in home improvement services and healthcare.

Ally's loan portfolio includes relationships with nearly 2,500 merchant locations.

Through this acquisition, Synchrony deepens its presence and reach in the home improvement and health and wellness sectors.

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.

Synchrony will create a differentiated solution in the industry by offering both revolving credit and installment loans at the point-of-sale in the home improvement vertical.

The Ally Lending health portfolio complements Synchrony's existing Health and Wellness platform and extends Synchrony's reach in cosmetic, audiology, and dentistry.