Synchrony (NYSE: SYF) announced 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.
Related article: Synchrony Sponsors Free ‘CARES Act’ Webinar April 8
Allegro Credit’s merchant network and customer base will largely join CareCredit, Synchrony’s health and wellness financing platform. According to the company’s announcement, the acquisition “advances Synchrony’s growth and diversification strategy and accelerates its industry-leading digital innovation, expanding choice at the point-of-sale for its providers, merchants, and customers.”
For its primary product offering in the audiology market, Allegro Credit is said to offer numerous loan options with flexible payment terms at the point of sale through a network of 3,200 merchants.
“Throughout its history, Allegro Credit has built a reputation for service excellence and innovation,” said Beto Casellas, CEO, CareCredit, a Synchrony solution. “Its 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.”
“It was essential to join a company that shares our cultural values, growth objectives, innovation mindset, and commitment to our merchants and customers,” said David Parsons, President and CEO, Allegro Credit. “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.”
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.
Images: Allegro Credit, Synchrony, CareCredit