Scottish financial services giant abrdn has unveiled plans to acquire subscription-based investment platform Interactive Investor for £1.49 billion.
Edinburgh-based abrdn – formerly Standard Life Aberdeen – said the move would “significantly enhance” its presence and growth opportunities in a fast-growing and attractive market.
Chief executive Stephen Bird added: “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.
Interactive Investor CEO Richard Wilson will continue to lead the online business after its takeover.
Mr Wilson said: “This is an exciting new chapter in our history and means 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.”
This is a unique opportunity and a transformative step in delivering our growth strategy.”
Stephen Bird, chief executive, abrdn.
Interactive Investor boasts more than 400,000 customers and assets under administration worth around £55bn.
For a flat monthly fee the service provides a secure home for pensions, individual savings accounts and a wide range of other investments.
It also offers a wide choice of more than 40,000 UK and international investment options, including shares, funds, trusts and exchange-traded funds.
Flotation plan scuppered
Abrdn has agreed to acquire 100% of the ordinary shares from investors including the JC Flowers IV fund and key members of Interactive Investor’s management.
Completion of the deal, which is to be funded in cash from abrdn’s capital resources, is subject to regulatory consents and shareholder approval.
The proposed takeover will end Interactive Investor’s plans to float on the stock market.
Shares in abrdn rose more than 3.2% on November 8 after it confirmed talks to potentially acquire Interactive Investor.
At market close today (December 2), the stock was down by nearly 4% at £2.30.
The move comes hot on the heels of abrdn acquiring subscription-based investment platform Finimize – boasting more than one million subscribers to its daily newsletter – for an undisclosed sum.
Earlier this year, SLA sold financial advice platform Parmenion to private equity firm Preservation Capital Partners in a £102 million deal.