Stockholm-based Klarna, an AI-powered global payments network and shopping assistant, on Monday announced the divestment of Klarna Checkout (KCO).
This strategic move will allow KCO to continue “evolving and enhancing as an industry-leading product under new ownership,” the company says.
“Klarna Checkout is very dear to me, and the impact it’s had on Klarna’s journey is immense. I’m so pleased it’s finding a new home, with owners who are carefully handpicked to continue to create outstanding value for our merchant partners. I look forward to working closely with them as they establish the next phase for KCO”, says Sebastian Siemiatkowski, CEO and co-founder of Klarna.
The announcement comes five months after the company launched its AI assistant powered by OpenAI. Available in the app, the assistant is designed to enhance customers’ shopping and payment experiences.
The buyers
An investor consortium, led by serial entrepreneur Kamjar Hajabdolahi, has reached an agreement to purchase the Checkout business in a deal that assesses the unit at 5.4 billion kronor ($520M), reports Bloomberg News.
According to the obtained, the financing for the deal will consist of 336M kronor in equity and 1.7B kronor in debt. Additionally, it includes a performance-based payment and a revenue share agreement with Klarna.
The buyer consortium also includes Systematic Growth, founded by Ashkan Pouya, and serial entrepreneur Martin Randel.
They focus on investing in and growing innovative Swedish companies. Hajabdolahi and his BLQ Invest are known for their “Buy and Build” strategy.
“We are thrilled to acquire Klarna Checkout and our ambition is to build on the solid foundation established by Klarna and take KCO to the next level, continuously evolving the product to meet the needs of our merchant partners and drive the future of e-commerce”, says Kamjar Hajabdolahi, CEO & Founding Partner at BLQ Invest.
“We look forward to engaging with our merchant partners and presenting our plans and roadmap for the continued evolution of KCO,” adds Hajabdolahi.
The buyers will take over Klarna Checkout on October 1, ensuring a smooth transition and retaining Klarna’s payment methods. Deutsche Bank served as the sole financial advisor during the acquisition process, which involved engaging with numerous potential buyers over a year.
Klarna Checkout
Launched in 2012, Klarna Checkout is a full checkout experience embedded on the site that includes all popular payment methods.
It has over 40 per cent market share in Sweden and over 20 per cent across the Nordics.
While the Checkout solution continues to play a critical role for the merchants it serves, Klarna has increasingly focused on offering world-class, flexible payment methods with multiple service providers.
Klarna: A global payments solution provider
Founded by Niklas Adalberth, Sebastian Siemiatkowski, and Victor Jacobsson in 2005, Klarna is an eCommerce payment solutions platform for merchants and shoppers.
Best known for its Buy Now Pay Later products, the comapny’s instant debit option, Pay Now, has been rolled out across all European markets and accounts for around a third of all transactions.
It means consumers now have the choice to pay in full immediately or pay over time – all without interest.
It is seamlessly integrated into the checkout process when customers select Klarna as their payment method at participating retailers.
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