Bokio merges operations with Swedish Red Flag.

Bokio, a Gothenburg, Sweden-based digital accounting company, announced getting into a merger agreement with its smaller counter party, Red Flag, a digital finance management company based in Stockholm.

The merger details were not disclosed. The deal will be financed by a capital raise operation of SEK 8M ($8M) added to the new entity by Bokio and Red Flag's shareholders.

The new business will continue under the name Bokio, and will have 80 employees supporting customers in Sweden and UK. Bokio's current CEO Viktor Stensson will continue as CEO of the merged company. Red Flag's CEO Mikael Pawlo, will be responsible for expansion and internationalization in the new company.

Bokio, founded in 2015 by Viktor Stensson, developed a software solution for small businesses and freelancers helping with administrative tasks including invoicing, employee expenses, reporting and VAT returns. The company raised $8 million prior to merging with Red Flag.

Red Flag, founded in 2016 by Mattias Söderhielm, Niklas Derouche and Mikael Pawlo, built an all-in-one digital admin solution for freelancers and small business. The company raised $8 million prior to merging with Bokio.