Synchrony Financial (NYSE:SYF) entered into a definitive agreement to acquire Ally Lending from Ally Financial Inc. on December 31, 2023. Synchrony to acquire Ally's point of sale financing business including $2.2 billion of loan receivables. The portfolio includes relationships with nearly 2,500 merchant locations and supports more than 450,000 active borrowers in home improvement services and healthcare. The transaction is expected to close in the first quarter of 2024, subject to the completion of customary closing conditions. Ally expects the sale to increase the company's CET1 ratio by approximately 15 basis points upon closing and be modestly accretive to tangible book value and earnings per share in 2024. Synchrony expects the 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. J.P. Morgan acted as financial advisor to Synchrony Financial.

Synchrony Financial (NYSE:SYF) completed the acquisition of Ally Lending from Ally Financial Inc. on March 4, 2024.