Synchrony acquires consumer financing software provider Versatile Credit

BOSTON - Growth equity firm PSG has completed the sale of Versatile Credit to Synchrony (NYSE:SYF), a $26 billion market cap consumer financial services company currently rated with GREAT financial health by InvestingPro, according to a press release statement. Financial terms of the transaction were not disclosed.

Versatile Credit provides consumer-financing software that connects merchants, lenders, and consumers through point-of-sale solutions across online, in-store, and mobile channels. The company serves retailers and healthcare providers in the elective medical, home improvement, and retail sectors. Synchrony, trading at an attractive P/E ratio of 8.5, has shown strong momentum with a 35% stock price increase over the past six months.

PSG invested in Versatile Credit in 2023, during which time the company expanded its customer base and invested in its leadership team. The acquisition will allow Versatile Credit to continue developing its consumer financing solutions as part of Synchrony’s operations.

"The team’s collaborative approach and combination of operational support and domain expertise helped us take Versatile Credit to the next level," said Ed O’Donnell, Chief Executive Officer of Versatile Credit.

Chris Nesbitt, Managing Director at PSG, stated, "It has been a privilege to support Versatile Credit through this period of tremendous growth."

Weil, Gotshal & Manges LLP served as legal counsel to PSG, while Shea & Company acted as financial advisor on the transaction.

Synchrony, a consumer financing company, provides credit and banking products to consumers and supports businesses across various sectors including retail, health, and auto. The company has maintained dividend payments for 10 consecutive years and recently implemented aggressive share buybacks, according to InvestingPro, which offers 8 additional key insights about the company’s performance. Versatile Credit has been developing consumer credit optimization solutions for 20 years.

In other recent news, Synchrony Financial has seen several notable developments. JMP Securities raised its price target for Synchrony Financial to $88 from $77, maintaining a Market Outperform rating, following positive management commentary about credit performance. Additionally, BofA Securities increased its price target to $84, citing loan growth and maintaining a Buy rating. Synchrony also announced a new partnership with Audibel to offer financing options for hearing care services, which will be available at over 1,000 locations nationwide. In corporate governance news, Synchrony appointed Deborah Ellinger to its Board of Directors, effective October 1, 2025. Meanwhile, Capital One Financial faced a stock decline of 5.5% amid growing concerns about consumer credit quality and deteriorating consumer confidence. This selloff also affected other consumer finance firms, such as Affirm Holdings and Synchrony Financial, which experienced declines as well. These recent developments highlight the dynamic nature of the consumer finance sector.

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