Klarna announces Close Brothers Retail Finance deal

Klarna is to buy Close Brothers Retail Finance (CBRF) from UK merchant banking group Close Brothers Group. Terms of the deal were not disclosed.

The PayTech venture says the acquisition, which is subject to approval by the Financial Supervisory Authority of Sweden (Finansinspektionen), will significantly strengthen its position in the UK market for retail financing and will enable accelerated growth and expansion of its consumer offering.

“What CBRF have achieved to date in the UK is impressive but together we can invest in realising the full potential of the business,” says Michael Rouse, Chief Commercial Officer at Klarna.

“Outside of the core offering in retail finance, we immediately recognised a shared commitment in building deep partnerships with our merchants so their business thrives and an unrelenting focus on the customer experience. By combining capabilities and leveraging CBRF market knowledge, we are confident that we can offer even more innovative and flexible payment solutions to our merchants and customers in the UK and across markets.”

Founded in 2014, CBRF has over 600 active merchants in the UK, including brands such as Samsung Electronics, Mothercare, GAME, Jessops, Ebuyer, Emma Mattress, Cotswold Outdoor and Victorian Plumbing.

Alex Marsh, Managing Director, comments: “We 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.”