Payment provider Klarna Bank has agreed to acquire Close Brothers Retail Finance (CBRF) from UK merchant banking group Close Brothers Group for an undisclosed sum.
Klarna said that the acquisition of CBRF will enable the payments firm to expand its retail financing services for customers in the UK market.
Klarna chief commercial officer Michael Rouse said: “We are delighted to welcome CBRF to Klarna, the complementary talents and propositions will help accelerate Klarna’s leadership in the payments market.
“What CBRF have achieved to date in the UK is impressive but together we can invest in realising the full potential of the business.”
Established in 2014, CBRF provides omnichannel retail finance services for the customers in the UK.
With more than 600 active merchants in the UK, Close Brothers Retail Finance serves major brands such as Samsung Electronics, GAME, Ebuyer, Emma Mattress, Cotswold Outdoor and Victorian Plumbing.
CBRF offers point of sale finance products, which will enable shoppers to pay over time in fixed monthly payments, supporting merchant to convert more browsers into buyers and enhance sales.
As of 31 July this year, the CBRF business is said to have a loan book of £66m. The deal is subject to approval by the Financial Supervisory Authority of Sweden.
CBRF managing director Alex Marsh said: “We at CBRF have transformed retail finance in the UK over the past four years and are extremely proud of what we have accomplished.
“Together with Klarna, we have the exciting opportunity to further develop our capabilities and deliver even more services and value to merchants to help them succeed. We are now focussing on a smooth integration and seamless continuity of our offering to merchants and customers.”
Klarna, which is one of Europe’s major banks, provides payment solutions for 60 million consumers across 90,000 merchants in 14 countries.
The bank provides direct payments, pay after delivery options and instalment plans for the consumers.
Klarna was established in 2005 to serve people shopping online, while Klarna Group was established after the acquisition of Sofort in 2014.
Klarna is supported by investors such as Sequoia Capital, Bestseller, Permira, Visa and Atomico.