Swedish payment company Klarna has agreed to purchase German payment provider Sofort from Reimann Investors, Sofort's majority shareholder.
Both companies will continue to offer their products side by side and operate on a stand-alone basis. The combined company will have 25 million users and 43,000 online merchants in 14 European countries.
The combined company will have a 10% market share of the e-commerce market in the Nordic countries, where the Stockholm-based Klarna has a majority of its business. Sofort has most of its clients in Austria and Germany.
The transaction is subject to approval by the Swedish Supervisory Authority. Terms of the deal were not disclosed. The tech news site TechCrunch reports the deal was valued at $150 million, though Klarna would not confirm that figure.