Business

‘To improve people’s lives,’ Stamford-based Synchrony acquires consumer-financing provider

Read more at www.stamfordadvocate.com

STAMFORD — Synchrony, the country’s largest private-label credit card provider, announced Tuesday it had agreed to acquire a firm specializing in consumer financing for audiology products, dental services and musical instruments.

The merchant network and customer base of Burlingame, Calif.-based Allegro Credit will largely join CareCredit, Stamford-based Synchrony’s health-and-wellness financing platform.

“Throughout its history, Allegro Credit has built a reputation for service excellence and innovation,” Beto Casellas, Synchrony’s CareCredit CEO, said in a statement. “Its health care 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 expected to close in the first quarter of 2021. Financial terms were not disclosed.


In response to an inquiry from Hearst Connecticut Media about how many Allegro employees would join Synchrony, a spokeswoman for Synchrony said, “all Allegro Credit employees will be offered roles at Synchrony, but we are not disclosing (the) number of employees.”

For its primary product in the audiology market, Allegro Credit offers a number of loan options with flexible payment terms at the point of sale through a network of 3,200 merchants, according to company officials.

“It was essential to join a company that shares our cultural values, growth objectives, innovation mindset and commitment to our merchants and customers,” David Parsons, CEO and president of Allegro Credit, said in a statement. “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.”

CareCredit’s purchase volume — a measure of charges incurred on credit product accounts — totaled about $2.8 billion in the third quarter of 2020, down about 3 percent year over year. It comprised about 8 percent of Synchrony’s total purchase volume during that period.

Earlier this month, Synchrony announced that CEO Margaret Keane would step down from the position in April after seven years as chief executive. She will become the company’s executive chairwoman and be succeeded as CEO by the company’s president, Brian Doubles.

Synchrony is headquartered at 777 Long Ridge Road, near the Merritt Parkway. It employs about 700 locally, ranking among the largest employers in the city.

Its employees are still working remotely in response to the coronavirus crisis. Last October, the company announced a policy allowing its staff to work from home permanently.

The company ranked No. 170 on last year’s Fortune 500 list.

[email protected]; twitter: @paulschott

Read more at www.stamfordadvocate.com

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