Swedish online payments firm Klarna is preparing to take on the likes of PayPal after acquiring German rival Sofort for around $150 million.
The combined firms will continue to offer their products side by side in the 14 European markets in which they operate. Between them they share 10% of the $100 billion e-commerce market in these countries, with 25 million users and 43,000 merchants.
Founded in Stockholm in 2005, Klarna lets users make online purchases and then pay for them later, assuming the risks for the merchants. According to TechCrunch, the firm has raised $250 million in funding from the likes of Sequoia Capital and DST.
It is now using some of that money to buy Germany's Sofort from the majority shareholder Reimann Investors. The transaction is subject to approval by the Swedish Financial Supervisory Authority.
Sebastian Siemiatkowski, CEO, Klarna, says: "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."