Kvika banki hf.: Kvika’s Acquisition of Netgiró Completed

Kvika banki hf. ("Kvika" or "the bank") has completed the acquisition of 80% of all shares in Netgíró hf. ("Netgíró") from Alva Capital ehf., following the signing of a Letter of Intent for the acquisition, which was announced on 16 July 2020. The bank, which previously owned a stake close to 20% in Netgíró, will now be sole owner of the company.

The acquisition of Netgíró is in line with Kvika's policy of utilising technological solutions to modernize financial services. Netgíró has developed an advanced credit rating system and offered its customers “buy now pay later” services. Kvika had previously successfully launched Auður, its fintech services application.

Kvika has collaborated effectively with Netgíró in recent years, including financing the company's credit portfolio. The acquisition enables the bank to further expand this co-operation, to increase efficacy and cost-efficiency for both companies. Netgíró currently has almost 3,000 points of sale in Iceland and just under 50,000 retail customers.

Kvika will publish its earnings forecast for 2021 on 28 January. A positive impact is expected from the acquisition of Netgíró on this year's results, and increasingly so in subsequent years.

Marinó Örn Tryggvason, CEO of Kvika:

“Iceland's financial system is changing and competition increasing. Kvika intends to use the latest technological solutions to serve its customers. With the acquisition of Netgíró, the bank is well positioned to expand its activities in financing consumer purchases. At the same time, utilising Netgíró's infrastructure to expand the company's services, offers major opportunities."

Skorri Rafn Rafnsson, Chairman of the Board of Alva Capital ehf.:

“This is a positive milestone for Netgíró, which strengthens its position through this move. Furthermore, the acquisition by Kvika attests to the dedicated and successful efforts of Netgiró's exceptional employees since the company was founded. I wish Netgíró all the best in the coming years."