Synchrony (NYSE: SYF) announced earlier this week it has reached a definitive agreement to acquire Allegro Credit, a provider of point-of-sale consumer financing for audiology products, dental services and musical instruments. According to Synchrony, Allegro Credit’s merchant network and customer base will join the health and wellness financing platform, CareCredit. The acquisition will notably advance Synchrony’s growth and “diversification” strategy as well as accelerate its digital innovation.
Speaking about the acquisition, David Parsons, President and CEO of Allegro Credit, shared:
“We see an amazing opportunity to amplify our differentiated innovative offerings through Synchrony and CareCredit’s network, reach and scale. This deal will help us accelerate the ability to improve people’s lives through the healthcare treatments they need or capture our customer’s passions with music products.”
Beto Casellas, CEO, CareCredit, a Synchrony solution, concluded:
“[Allegro Credit’s] healthcare financing products help people live fuller, healthier and happier lives through payment plans that make it easier for our customers to get the care they want and need. Our businesses are very complementary, and this acquisition will enhance CareCredit’s scale of offerings and depth of expertise.”
The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2021. Financial terms were not disclosed; the deal is not expected to have a material impact on Synchrony’s financial results.