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Danish neobank Lunar offers to buy Norway's Instabank

Mar 28, 2022
Illustration of a supermarket basket with a bank inside.

Illustration: Sarah Grillo/Axios

Danish challenger bank Lunar has made an offer to buy Norwegian digital bank Instabank in an all-cash deal valued at 1.29 million Norwegian kroner (~$150 million).

Why it matters: In a crowded market for digital banking services, consolidation is inevitable — particularly as fast-growing companies look to expand into new markets.

Details: Lunar's offer for the deal was 3.75 kroner a share, which represents a 56.3% premium on Instabank's closing share price on March 25.

  • Instabank's board unanimously recommended the offer and the companies expect the deal to close in the second quarter, following regulatory approval.

Context: Lunar already has a footprint in Denmark and Sweden, but the acquisition would expand its presence in Norway while also opening the door to the Finnish market.

  • Instabank claims more than 60,000 customers in Norway, Finland and Germany, while Lunar says it has more than 450,000 consumer and business customers throughout northern Europe.

Flashback: This isn't the first time Lunar has expanded through acquisition — in 2021, it acquired Swedish lending platform Lendify and Danish-based payments platform Paylike.

  • And earlier this month, Lunar announced it raised €70 million in Series D-2 funding and launched B2B payments for business customers.
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