Kvika banki hf.: Letter of intent for the purchase of Netgíró hf.

Kvika has signed a letter of intent for the purchase of 80% share in Netgíró. The bank Currently owns around 20% share in the company and will therefore, if the purchase goes through, become the sole owner of the company.

The purchase of Netgíró is in line with the bank's policy to use technological solutions to modernize financial services. Netgíró has focused the development of credit ratings as well as offering simple installment payments. The bank has previously successfully launched the fintech service Auður.    

Kvika has had a successful collaboration with Netgíró in the past years, including financing of the company's claims. The purchase will enable the bank to further strengthen the collaboration with the company which will lead to increased efficiency and optimization for both parties. Netgíró currently operates in almost 3,000 local shops and over 68,000 individuals use the company's services.

The letter of intent is subject to various reservations, such as the approval of Kvika's board of directors, the conclusion of a due diligence and the approval of the relevant authorities. It is estimated that a purchase agreement will be signed within three months.

The purchase will not affect the bank's earnings forecast for the year but it is the aim that the purchase will have positive long term effects.

Marinó Örn Tryggvason, Kvika's CEO:

„We see opportunities in Netgíró in the future as the company has a high market share and strong and experienced employees. The purchase fits well with the bank's policy in the development of financial services which is based on cost-effective technological solutions. With the bank’s strong infrastructure and financial strength behind it we believe that the company will be in a good position to grow in the future.”   

Skorri Rafn Rafnsson, chairman of the board of Alva Holding ehf., Netgíró's parent company:

“I am pleased by the letter of intent which confirms what we at Netgíró have worked towards from the establishment of the company. Outstanding employees, a clear vision for the future and hard work have made the company the place it holds today. We are confident that there are exciting times and many opportunities for growth ahead.”