Goldman Sachs acquires personal finance start-up
NEW YORK Goldman Sachs Group Inc bought Clarity Money, a personal finance startup, to bolster its Marcus online lending business, it said yesterday.
Buying Clarity Money, a free app that helps consumers manage their personal finances, is expected to add over one million customers to the financial service firms Marcus business. Marcus offers tools to help customers save and borrow. Clarity Money will be re-branded as Marcus by Goldman Sachs over time, the company said.
Terms were not disclosed. Goldman launched Marcus in October 2016 as a way to court Main Street borrowers saddled with credit card debt. It offers loans from US$3,500 to $40,000 and targets credit card borrowers who can benefit from consolidating debt into a single loan with a lower interest rate.
GS Bank, a subsidiary of Goldman Sachs, is making the acquisition. Clarity Money CEO Adam Dell will join Goldman Sachs as a partner. ZURICH Swiss staffing company Adecco Group is buying US-based technology education provider General Assembly for US$412.5 million including debt, it said yesterday, adding heavy investments in the business would initially drag on earnings.
General Assembly, whose founders include Hyatt hotels heir Adam Pritzker, is a private school business started in 2011 that provides training in fields such as data science and analysis.
Its revenues in 2017 were about $100 million with a strong 2018 booking backlog, Adecco said in a statement. Adecco has gone into acquisition mode to kickstart growth and address its lagging performance compared with faster-growing rivals, such as Randstad.
Adecco said it saw synergies between General Assembly and its own training business, in particular the Lee Hecht Harrison career transition business.
General Assembly is currently in a high-growth investment phase and is therefore expected to be modestly dilutive to Group earnings in 2018, the impact of which is included within the groups current guidance on planned strategic investments, Adecco said in a statement.
From 2019, General Assembly is expected to be modestly accretive to earnings, it added.
In the medium-term General Assemblys EBITA (core earnings) margins are anticipated to be significantly higher than the group average.
Over the last three years, Adecco said General Assemblys revenue had grown at a compound annual rate of 30 per cent.
The total enterprise value (equity plus debt) of the deal is $412.5 million, Adecco said, adding General Assembly would continue to operate as a separate division under its Chief Executive Jake Schwartz, a co-founder.
Analysts from Zuercher Kantonalbank (ZKB), who earlier this month downgraded their rating on Adecco to market weight, said they were not expecting a big market reaction to the deal. REUTERS