Tuesday, July 23, 2024
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Klarna sells checkout business to investor consortium

Klarna has finalized a deal to sell its online checkout service, Klarna Checkout (KCO), to a consortium of investors for SEK 5.4 billion ($515 million). Key points include:

  1. Consortium Details:
    • Led by Kamjar Hajabdolahi, CEO and founding partner of BLQ Invest.
    • Involves Ashkan Pouya, founder of Systematic Growth, and Martin Randel, co-founder of Vitamin Well AB.
  2. Deal Structure:
    • SEK 2 billion for the business itself.
    • SEK 3.4 billion in a revenue-sharing agreement.
    • Ownership transfer to occur on October 1.
  3. Klarna’s Focus:
    • Selected the consortium after a year of engaging with potential buyers.
    • Aims for a smooth transition and will continue offering Klarna’s payment methods in the checkout.
  4. KCO Background:
    • Debuted in Northern Europe in 2012.
    • Handles the entire checkout process for stores.
    • Holds a 40% market share in Sweden and over 20% across the Nordics.
  5. Strategic Benefits:
    • Enables Klarna to concentrate on its core offering.
    • Removes potential friction in distributing payment methods through other service providers like Stripe and Adyen.
    • Ensures KCO continues to grow under new management.
  6. Statements:
    • Klarna CEO Sebastian Siemiatkowski emphasizes KCO’s impact on Klarna’s journey.
    • Hajabdolahi expresses intent to build on KCO’s established foundation to further its growth.

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