Fintech unicorn Klarna is buying the retail financing arm of merchant bank Close Brothers to strengthen its position in the UK market.
Founded in Stockholm, Sweden, in 2005, Klarna gives online consumers the option to apply for financing at the checkouts of up to 90,000 merchant partners.
The acquisition of the Close Brothers business will give Klarna access to a further 600 active merchants in the UK - including brands such as Samsung Electronics, Mothercare, GAME, Jessops, Ebuyer, Emma Mattress, Cotswold Outdoor and Victorian Plumbing - and a loan book of approximately £66 million.
Michael Rouse, chief commercial officer of Klarna, says: “The complementary talents and propositions will help accelerate Klarna’s leadership in the payments market. Outside of the core offering in retail finance, we immediately recognised a shared commitment in building deep partnerships with our merchants so their business thrives and an unrelenting focus on the customer experience.”
Financial terms were not disclosed.