Klarna acquires Close Brothers Retail Finance
Klarna Bank AB (“Klarna”) is acquiring Close Brothers Retail Finance (“CBRF”) from UK merchant banking group Close Brothers Group plc (“Close Brothers”). The acquisition will significantly strengthen Klarna’s position in the UK market for retail financing and will enable accelerated growth and expansion of the consumer offering.
Michael Rouse, Chief Commercial Officer of Klarna: “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. 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, Close Brothers Retail Finance has established itself as a highly regarded provider of omnichannel retail finance with over 600 active merchants in the UK, including brands such as Samsung Electronics, Mothercare, GAME, Jessops, Ebuyer, Emma Mattress, Cotswold Outdoor and Victorian Plumbing. The point of sale finance products offered allow shoppers to pay over time in simple, fixed monthly payments, helping merchants convert more browsers into buyers, uplifting sales and ultimately providing a superior customer experience and driving loyalty. The market-leading proposition in combination with a talented team has resulted in CBRF becoming one of the fastest growing providers of retailer finance in the UK.
The CBRF business had a loan book of £66 million on 31st of July 2018. The acquisition is subject to approval by the Financial Supervisory Authority of Sweden (Finansinspektionen).
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