Kvika Bank has completed its acquisition of 80% of shares in Netgíró from Alva Capital. A signed memorandum of agreement regarding the acquisition was presented on July 16, 2020. Previously, the bank held 20% of shares in Netgíró, making it now the company’s sole shareholder.

 

The acquisition of Netgíró aligns with the bank’s goals of implementing technological solutions to modernize financial services. Netgíró’s objective has been the development of loan qualification assessments, along with offering accessible installment plans. Previously, the bank has established a successful financial technology service called Auður.

 

Over the past few years, Kvika has shared a successful partnership with Netgíró, e.g. by financing the company’s claims portfolio. The acquisition strengthens this partnership and results in increased efficiency and streamlining for both parties. Currently, Netgíró operates around 3,000 branches within Iceland and has around 50,000 individual customers.

 

This January 28, the bank will present its 2021 earning forecast. The forecast predicts that the acquisition of Netgíró will have a positive effect on annual earnings — an effect which is expected to increase exponentially in the coming years.

 

Marinó Örn Tryggvason, Kvika CEO:

 

“With increased competition, the nation’s financial system is changing. Kvika intends to be a financial company that makes use of new advances in technology to provide service to its customers. With the acquisition of Netgíró, the bank is set to expand its operations in the financing of trade transactions. Furthermore, Netgíró’s internal infrastructure provides an opportunity to broaden the company’s services.”

 

Skorri Rafn Rafnsson, Alva Capital Chairman:

 

“This is an important milestone in Netgíró’s history as the company will become even stronger through this acquisition. Kvika’s acquisition of Netgíró also serves as validation of the company’s good standing and the excellent work performed by its exemplary staff ever since the company’s founding. I wish Netgíró all the best in the coming years.”