abrdn to Buy interactive investor for £1.5bn

interactive investor has over 400,000 customers and assets under administration of approximately £55 billion. 

It’s the land of the lowercase lovers as abrdn will acquire investment platform interactive investor for £1.49 billion.

After plenty of chatter, Edinburgh-based financial services firm abrdn has confirmed it plans to buy 100% of interactive investor.

Stephen Bird, CEO of abrdn, comments: “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.”

Along with those B2C aspects, interactive investor does offer company accounts. These allow users to trade in the name of a UK limited company in a range of investments, including UK and international equities, funds, ETFs and investment trusts.

abrdn provides various services. For instance, its platform technology and tools are designed for UK wealth managers and financial advisers to look after the needs of their clients.

Richard Wilson, CEO of interactive investor, states: “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.”

Wilson points out that the management will “remain the same”. It’s not clear what happens to other staff members. interactive investor has 534 employees listed on LinkedIn.

interactive investor was founded in 1995 and is based in London. It has over 400,000 customers and assets under administration of approximately £55 billion.

interactive investor will operate as a standalone business within abrdn’s “Personal vector”. Following the acquisition, abrdn says its Personal vector will have £69 billion of assets under management.

abrdn sees good days ahead and explains that the direct investing market has grown at c. 15%  compound historically and is expected to continue growing at a similar rate in the future driven by such things as the increased digitalisation of services.

interactive investor also “complements” recently added new digital capabilities, with Exo Investing, which allows investing for clients through AI; and Finimize, which was acquired in October, and offers investing information and insights.

interactive investor generated adjusted profit before tax of £45.5 million and reported profit before tax of £41.7 million for the year ended 2020 and had gross assets of £636 million as at 30 June 2021.

It is expected that the deal will be completed in the second quarter of 2022.

Antony Peyton
Antony Peyton
Antony Peyton is the Editor of eWeek UK. He has 18 years' journalism and writing experience. His career has taken him to China, Japan and the UK - covering tech, fintech and business. Follow on Twitter @TonyFintech.
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