Klarna AB’s acquisition of BillPay GmbH from Wonga Group Limited

Squire Patton Boggs has advised Wonga Group Limited, the UK’s largest short-term lender, on the sale of its German operation BillPay GmbH to Swedish payments start-up, Klarna AB.

Founded in 2009, BillPay is an online payment services provider with some 12 million customers across Germany, Austria, Switzerland and the Netherlands. BillPay is licensed by the German Federal Financial Supervisory Authority (BaFin) to offer money transmission services under the Payment Services Supervision Act (ZAG).

Wonga is best known for its short-term loan products, and operates an international lending business for consumers in the UK, South Africa, Canada, Poland and Spain. The sale of BillPay is subject to the approval of BaFin.

The acquisition is subject to approval by the Federal Financial Supervisory Authority in Germany.

Squire Patton Boggs has advised Wonga Group on the deal with a team led by London Corporate partner Rob Bray (picture) and senior associate Julian Ciecierski-Burns, which included corporate, financial services, Fintech, regulatory, tax and data protection experts in the Squire Patton Boggs London, Berlin and Frankfurt offices.

Herbert Smith Freehills has advised Klarna AB on the deal with a team

led by corporate partner Nico Abel in Frankfurt and senior associate Joseph Fisher, assisted by associate Paul Hartley, in London. Frankfurt- based finance partner Julia Mueller and London based partners Will Arrenberg (tax) and Sarah McNally (insurance), also advised on the deal, along with London and Frankfurt-based associates Perminder Gainda, Ruediger Hoffman, Tatiana Guenster, Timo Buehler, Andrey Latyshev and Paul Annabell.

Involved fees earner: Nico Abel – Herbert Smith Freehills; Joe Fisher – Herbert Smith Freehills; Paul Hartley – Herbert Smith Freehills; Ruediger Hoffman – Herbert Smith Freehills; Tatiana Guenster – Herbert Smith Freehills; Timo Buehler – Herbert Smith Freehills; Paul Annabell – Herbert Smith Freehills; Julia Müller – Herbert Smith Freehills; Sarah McNally – Herbert Smith Freehills; Andrey Latyshev – Herbert Smith Freehills; Will Arrenberg – Herbert Smith Freehills; Perminder Gainda – Herbert Smith Freehills; Robert Bray – Squire Patton Boggs; Julian Ciecierski-Burns – Squire Patton Boggs;

Law Firms: Herbert Smith Freehills; Squire Patton Boggs;

Clients: Wonga Ltd; Klarna AB;