Stockholm, Sweden-based payment provider Klarna Bank AB is acquiring London, United Kingdom-based Close Brothers Retail Finance from UK merchant banking group Close Brothers Group plc.
The amount of the deal, which is subject to approval by the Financial Supervisory Authority of Sweden (Finansinspektionen) – was not disclosed.
The acquisition will strengthen Klarna’s position in the UK market for retail financing and will enable accelerated growth and expansion of the consumer offering.
Founded in 2014 and led by Alex Marsh, Managing Director, Close Brothers Retail Finance provides omnichannel retail finance with over 600 active merchants in the UK, including brands such as Samsung Electronics, GAME, Ebuyer, Emma Mattress, Cotswold Outdoor and Victorian Plumbing. The point of sale finance products offered allow shoppers to pay over time in fixed monthly payments, enabling merchants to convert browsers into buyers, uplifting sales and providing a superior customer experience and driving loyalty.
The CBRF business had a loan book of £66 million on 31st of July 2018.
Founded in Stockholm, Sweden, in 2005, Klarna is one of Europe’s leading payment providers and a licensed bank, which gives online consumers the option to “Pay now”, “Pay later” or “Slice it” (pay over time). The company currently partners with 90,000 merchants, including Adidas, ASOS, JD Sports, Lenovo, Arcadia Group and Spotify, has 2,000 employees and is active in 14 countries.
It is backed by investors such as Sequoia Capital, Bestseller Group, Atomico, VISA and Permira.