Financial services giant Abrdn has agreed to buy UK investment platform Interactive Investor (II).
The company will purchase 100% of the ordinary share capital of II for a total cash consideration of £1.49bn ($1.98bn, €1.75bn), the asset manager said in a London Stock Exchange filing.
Completion is subject to customary conditions including regulatory consents and approval from Abrdn shareholders.
The UK investment platform has over 400,000 customers and £55bn in AUA, which will expand the Scottish business’ position in the personal wealth market with assets under management and administration increasing fivefold to £69bn, it said.
II chief executive Richard Wilson will join Abrdn as part of the deal, with the platform operating as a standalone business.
Stephen Bird, chief executive of Abrdn, said: “This is a unique opportunity and a transformative step in delivering our growth strategy. Interactive Investor is the UK’s number one subscription-based investing platform with a powerful reputation as a consumer champion.
“Abrdn’s scale, resources, and shared vision will enable Interactive Investor to grow confidently and expand its leadership position in the UK’s attractive savings and wealth market. I am delighted that Richard Wilson and his team will continue to lead interactive investor.”
Wilson added: “This is an exciting new chapter in our history and means that we can focus exclusively on serving those who matter most: our customers. We will have access to Abrdn’s additional capabilities across research, advice and wealth management services, and we will benefit from being part of one of Europe’s largest investment and wealth management firms, with a vision and values closely aligned to our own.
“Our management will remain the same, and the same extraordinary team will continually develop our service and technology, while maintaining our subscription pricing, our whole of market choice and the same campaigning spirit and editorial independence.”