Klarna Averts Strike With IPO Speculation Growing

Jonas Ekblom, Bloomberg News

A Klarna app logo on a mobile phone arranged in London, U.K., on Thursday, Jan. 21, 2021. Klarna AB, a Swedish payment provider for online shoppers, is still setting its sights on an initial public offering even after its latest funding round left it roughly twice as valuable as it was a year ago. , Bloomberg

(Bloomberg) -- Swedish buy-now-pay-later provider Klarna Bank AB has averted a strike by some of its staff after the company signed a collective bargaining agreement with the Financial Sector Union of Sweden.

The deal was struck on Friday night, roughly one week after two labor unions — Engineers of Sweden and Unionen — threatened to strike on Nov. 7 if the parties failed to reach an agreement. The new accord covers Klarna’s Swedish workplaces.

“We welcome Klarna into the Swedish model and look forward to a fruitful cooperation. With a collective bargaining agreement we strengthen employee influence and secure good terms for everyone,” Camilla Frankelius, head of negotiation at the Engineers of Sweden said in statement on Friday.

Klarna’s founder and Chief Executive Officer Sebastian Siemiatkowski had been a vocal opponent against labor unions at the Stockholm-based company. However, in the same press release, Siemiatkowski said that he is happy to have struck an agreement that ensures operational flexibility for Klarna and its employees.

The announcement comes amid reports that Klarna is readying a stock-market listing within months at a valuation of more than $15 billion. The company this weekend confirmed it had established a new British holding company, a move which may be the latest step in a lengthy process to take the firm public.

Read More: Klarna Establishes UK Holding Company in Step to Listing