Abrdn completes buyout of Interactive Investor
The active investment and wealth management firm confirmed it has been given the green light by regulators and received Abrdn shareholder approval for the transaction.
As such, it has completed its £1.49bn acquisition of subscription-based investment platform – Interactive Investor – after the plan was first announced in December 2021.
The DIY investing platform with 400,000 customers and approximately £59bn in assets under administration will continue to operate as a standalone business and an independent brand.
It confirms there are no changes for any II customers and its rated products will continue to be independently collated, stating that “all fund managers, including Abrdn, will have to earn their place among II’s rated investments”.
II said today marks the next phase of its journey, as it can tap into Abrdn’s advice, research and wealth management capabilities “to build on its already leading position in the UK’s savings and wealth market”.
It added that high quality advice is becoming “increasingly important,” and it sees “real scope” to help customers who need support and expertise to meet their financial goals for capital preservation and wealth creation.
For Abrdn, which has £542bn AUM globally as at 31 December 2021, said this is a “growth-driven acquisition for its personal vector” as II will add diversification to its revenue streams and “substantially increases scale and expands the company’s addressable market”.
Another appeal of II is that it has “higher value customers than its peers, with assets under administration per customer of £145,000”.
‘Shared vision for the future’
Richard Wilson, CEO of II, said: “With increased scale has come innovation, a powerful campaigning voice, and even better value, stamping out exit fees along the way.
“Today we join a company with a deep financial services history, and with a shared vision for the future. The opportunities that come with joining the Abrdn family are significant. We will be working with Abrdn’s talented team to harness their advice, wealth management and research capabilities for the benefit of our customers.”
Stephen Bird, CEO, Abrdn, added: “The acquisition of II is a transformative deal for Abrdn’s personal vector, and marks an important step forward in delivering our strategy for client-led growth.
“II’s high-tech direct investing service is the perfect complement to the high-touch wealth and financial planning capabilities we already offer.
“As a leading player in a fast-growing market, with a scalable technology platform and a distinctive subscription-based model, the acquisition of II will also diversify and grow our revenues.”
II completed the acquisition of TD Direct Investing in 2017, Alliance Trust Savings in 2019, and Share plc in 2020. Its latest acquisition was the EQi book of customers in 2021.