Synchrony to buy Ally Financial’s consumer financing business
January 22, 2024

Synchrony CEO, Brian Doubles. Image: American Banker
Synchrony announced it’s buying Ally Financial’s point-of-sale financing business, Ally Lending, which offers home improvement loans and has a $2.2 billion book of business.
The big picture: As prices rise — especially across the HVAC industry — the role of financing becomes more important.
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One estimate says point-of-sale consumer financing makes up 3.5% of all US consumer spending.
Details: The deal adds ~2,500 merchants (HVAC contractors included) and 450,000 borrowers to Synchrony’s customer base. “This expands Synchrony's multi-product strategy by extending its revolving credit and promotional financing products to Ally Lending's merchants,” the announcement said.
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"This deal represents a significant and exciting growth opportunity for Synchrony — it's a strong strategic fit that will unlock value… by integrating products and teams in our expanding platforms of home improvement and health and wellness," said Synchrony CEO Brian Doubles.
Of note: This isn’t the first time home improvement lenders have been targeted in M&A deals. In 2021, Truist Bank acquired Service Finance for $2 billion, Goldman Sachs bought Greensky for a similar amount, and Regions Bank acquired EnerBank for ~$1 billion.
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This past October, however, Goldman announced it was offloading Greensky for a rumored fraction of what it paid.
What’s next: Synchrony will provide more information on the deal today during its earnings call.
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