British challenger bank Tandem has agreed to acquire Harrods Bank, the banking unit of luxury department store Harrods, for an undisclosed sum.

Harrods will trade under the Tandem brand upon deal closing, which is subject to regulatory nod.

Tandem will get £80m of capital infusion as part of the deal. Tandem expects the transaction to be finalised in “a few months”.

The challenger bank said that the takeover will accelerate its launch plans to provide savings accounts to its customers.

Commenting on the deal, Tandem founder Ricky Knox said: “Tandem has been built from the ground-up with the help of over 11,000 co-founders, who have helped us shape products and services that really make a difference to their lives.

“This acquisition will allow us to scale the business and ensure we can introduce as many people as possible to a new way of banking.”