Klarna acquires Close Brothers Retail Finance to expand UK presence

Payment solution developer Klarna Bank has acquired point-of-sale finance business Close Brothers Retail Finance, from UK merchant banking group Close Brothers.

The deal has been made to support Klarna’s presence in the UK market and will also support the development of its consumer offerings.

Founded in 2014, Close Brothers Retail Finance offers more than 600 merchants in the UK with the tools to offer their customers financing at the point-of-sale. Its products enable consumers to make big purchases instantly and pay for it over time in monthly instalments.

Loans can be taken out from between £250 and £25,000 on terms ranging from 6 to 84 months. The credit facilities can be used at both online stores and in-store electronic terminals.

Klarna UK managing director Luke Griffiths said, “CBRF has deftly proven its business and risk model capabilities in building creative financing solutions in a competitive UK market.

“Together, we will have a rich omnichannel product offering that will exceed than anything currently available for a wide range of retail verticals, helping merchants unlock growth and allow us to serve even more customers and better. We are excited about what we can achieve together.”

Close Brothers Retail Finance had a loan book of £66m as of 31st July 2018.

Last year, London-based buyout house Permira picked up a strategic stake in Klarna, in a deal reported to be worth $225m.

Klarna is a Sweden-based payments solution provider for e-commerce companies through direct transactions, pay after delivery and instalment plans.

Copyright © 2018 FinTech Global

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