Kvika banki hf. (”Kvika“ or the “bank“) and Rapyd Financial Network (2016) Ltd. (”Rapyd“) have signed an asset purchase agreement stating that Kvika, and later the bank‘s subsidiary, will acquire part of Valitor hf.‘s (”Valitor“) merchant agreements. The transaction is subject to final approval of the Icelandic Competition Authority and the approval of the merger of Rapyd and Valitor by relevant authorities. Kvika will enjoy a strong market share and the bank will be able to be a new and strong competitor on the acquiring market in Iceland.
Kvika currently provides various services with payment solutions and this agreement will further strengthen the bank’s position in payment services in Iceland.
According to the agreement it is envisaged that the bank’s subsidiary will become a Payment Facilitator and will in the coming months acquire agreements with the relevant merchants according to provisions of the agreement, which from that point will become customers of the bank or its subsidiary. Following the transaction Valitor will provide certain back-end and acquiring services in relation to the services that Kvika’s subsidiary will provide to merchants.
The effects of the agreement on Kvika’s capital base are negligible and the effect on this year’s operating results is minor. It is estimated that the agreement will have around ISK 200-300 million positive effect on the bank’s profit before taxes from and including the year 2023.
Marinó Örn Tryggvason, CEO of Kvika banki hf.:
In last years the bank has worked systematically to diversify and build up the company’s revenue streams, and this agreement is yet another milestone in that direction. The environment for financial undertakings is changing and Kvika aims to be an active participant in that change. This agreement means that the bank will be in a unique position to offer legal entities interesting solutions and increase competition in payment services and other financial services.