As soon as Erling Skakke heard that Sigurd and Markus had sailed southwards, he hastened to Viken, and drew together an armed force; and he soon had a great many men, and many stout ships. But when he came farther in Viken, he met with a strong contrary wind, which kept him there in port the whole summer. Now when Sigurd and Markus came east to Lister, they heard that Erling had a great force in Viken; so they turned to the north again.
But when they reached Hordaland, with the intention of sailing to Bergen, and came opposite the town, Nikolas and his men rowed out against them, with more men and larger ships than they had. Sigurd and Markus saw no other way of escaping but to row away southwards. Some of them went out to sea, others got south to the sound, and some got into the Fjords. Markus, and some people with him, sprang upon an isle called Skarpa.
Nikolas and his men took their ships, gave Jon Halkelson and a few others quarter, but killed the most of them they could get hold of. Some days after Eindride Heidafylja found Sigurd and Markus, and they were brought to Bergen. Sigurd was beheaded outside of Grafdal, and Markus and another man were hanged at Hvarfsnes. This took place on Michaelmas day (September 29, 1163), and the band which had followed them was dispersed.