Klarna plans to take on Amazon, Google and Facebook as a viable alternative market for online merchants following the completion of its $1 billion deal to acquire comparison shopping service PriceRunner
PriceRunner will bring new features in the form of product reviews, product discovery and price comparisons to the Klarna app, while providing merchant partners with behavioural insights and marketing opportunities to increase Website traffic.
With businesses in Sweden, Denmark, Norway and the United Kingdom, PriceRunner compares 3.4 million products from 22,500 retailers in 25 countries. During the 12-month period ending on Sep 30, 2021, the firm had revenues amounting to SEK460 million and an adjusted EBITDA margin of 52%.
The acquisition is part of an attempt by Klarna to embed itself into all aspects of the consumer shopping journey, from inspiration and product selection, to flexible payments and delivery, tracking and returns.
David Fock, Klarna’s chief product officer comments: “The acquisition will serve to strengthen our consumer offering and that Klarna will not be a marketplace but a viable and competitive alternative for retail partners vs Amazon, Google and Facebook. Klarna and PriceRunner are united in our fundamental belief that tech companies, no matter where they operate, compete on the basis of their own merit with the best products and services to gain consumers’ trust.”
Upon closure, PriceRunner's 200+ employees in Sweden, Denmark and Norway will be assimilated into Klarna's 5000+-strong worldwide team.