Klarna has successfully completed a transaction to divest its online checkout solution, Klarna Checkout (KCO), to a group of investors led by Kamjar Hajabdolahi, CEO and founding partner of the Stockholm-based venture capital firm BLQ Invest. The investment group also includes Ashkan Pouya, founder of Systematic Growth, and Martin Randel, co-founder and board member of Vitamin Well AB.
Swedish media outlet Breakit reported that the consortium will acquire the business unit for SEK 5.4 billion (approximately $515 million), which includes SEK 2 billion for the business and about SEK 3.4 billion as part of a revenue-sharing arrangement.
Klarna opted for this consortium following an extensive year-long search, engaging with numerous leading private equity firms and potential strategic buyers. The transition of ownership to the consortium is scheduled for October 1. Both Klarna and the new owners are committed to a seamless transition and will maintain a partnership, with Klarna’s payment solutions continuing to be available through KCO under a distribution partner agreement.
KCO, which launched in 2012 in Northern Europe, is described by Klarna as a comprehensive payment solution that manages the entire checkout process for stores. It holds a 40% market share in Sweden and more than 20% across the Nordic countries, offering various flexible payment options to consumers.
Klarna has increasingly focused on integrating its payment solutions with multiple service providers in recent years. According to Bloomberg, the sale of KCO will alleviate any potential conflicts concerning the distribution of Klarna’s payment methods via payment service platforms like Stripe and Adyen.
This deal allows Klarna to focus more on its core offerings while ensuring that the KCO business thrives under new, dedicated management. Klarna’s CEO and co-founder, Sebastian Siemiatkowski, expressed his sentimental attachment to KCO, noting its significant impact on Klarna’s overall success.
Hajabdolahi stated that the consortium plans to build upon Klarna’s robust foundation to elevate KCO to new heights.
Source: fintechfutures.com
