Klarna's U.K. ambitions drive Close Brothers deal
Swedish financial services provider Klarna Bank has boosted its U.K. foothold by agreeing to buy merchant bankers Close Brothers' retail financing portfolio.
Klarna, originally launched in 2005 in Stockholm as an online checkout process and installment payments provider, is adding markets and diversifying its product menu.
The companies did not disclose financial details, but Klarna gains access to more than 600 active U.K. merchants in the Close Brothers portfolio and outstanding loans of about $83 million.
"The complementary talents and propositions will help accelerate Klarna's leadership in the payments market," Michael Rouse, chief commercial officer of Klarna, said in a Friday press release.
Payment processors and merchants seeking installment financing options during e-commerce checkout have turned to companies like Klarna to add the feature as a way to combat Amazon's growing power in the sector.