Sweden-based payment firm Klarna has agreed to purchase SOFORT, an online payment start up from Germany, from its majority shareholder Reimann Investors, as part of its strategy to accelerate growth across all European markets.
Following the completion of the transaction, which is subject to approval by the Swedish Financial Supervisory Authority, both companies will continue to provide their products side by side and operate on stand-alone basis.
Together, Klarna and SOFORT, will provide their services in 14 European countries, and will account for 10% market share of the $100bn e-commerce market in which they operate.
The integrated company will have 25 million users and partnerships with over 50% of all German online merchants. Collectively, the group will work together with 43,000 online merchants.
Klarna CEO and co-founder Sebastian Siemiatkowski said, "Together we have an incredible opportunity to provide the most trusted payment solution to our merchants and make it simpler and safer for consumers to shop online."
SOFORT CEO Dr Gerrit Seidel said, "Together we are providing online merchants the opportunity to offer both popular payment methods out of one hand in Germany and to develop further product innovations."
Established in 2005, Klarna provides secure and easy-to-use payment services to e-stores in Europe and its payment technologies have been implemented by more than 18,000 online shops in Sweden, Norway, Denmark, Finland, Germany, Austria and the Netherlands.