Payment provider Klarna Bank is acquiring Close Brothers Retail Finance from UK merchant banking group Close Brothers Group.

The acquisition will strengthen Klarna’s position in the UK market for retail financing and will enable accelerated growth and expansion of its consumer offering.

The business had a loan book of £66 million on 31 July 2018. The acquisition is subject to approval by the Financial Supervisory Authority of Sweden.

Michael Rouse, chief commercial officer of Klarna, said: “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.”

Founded in 2014, Close Brothers Retail Finance has established itself as a provider of omnichannel retail finance with over 600 active merchants in the UK, including 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 fixed monthly instalments, helping merchants convert more browsers into buyers, uplifting sales and ultimately driving loyalty.

Close Brothers Retail Finance managing director Alex Marsh added: “We are now focussing on a smooth integration and seamless continuity of our offering to merchants and customers.”

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