Asset manager Abrdn has confirmed media reports that it is looking to buy UK investment platform Interactive Investor (II) in a deal worth more than £1.5bn ($2.02bn, €1.75bn).
The investment platform has more than 400,000 customers and assets under administration of around £55bn.
Abrdn said in a London Stock Exchange statement on 8 November: “The company notes recent media speculation and confirms that it is currently in discussions with JC Flowers & Co regarding a potential acquisition of Interactive Investor.
“There can be no certainty that these discussions will result in a transaction and a further announcement by the company will be made as and when appropriate.”
According to Sky News, the acquisition could be complete within the next fortnight.
If the deal goes ahead, it will end II’s preparations to join rivals Hargreaves Lansdown and AJ Bell on the London stock market following months of talks about a 2022 flotation.
A spokesperson for II said: “Discussions with Abrdn are ongoing, there can be no certainty that these discussions will result in a transaction. An IPO remains an attractive and possible outcome, and discussions around the process are also under way.”
‘Gangbusters’
Holly Mackay, chief executive of Boring Money, said: “Any acquisition could be important for a small army of savvy DIY investors when it comes to fee disruption and innovation. Over the last few years Interactive Investor has been steadily acquiring all the fixed-fee platforms in the UK market, making it the only major player with this model.
“Fixed-fee advocates have run out of choices for any other major established platform supporting well-diversified assets and investments and pensions. Any future changes to Interactive’s pricing model would be a blow.
“The DIY investment market has been going gangbusters since the pandemic. Last week, Abrdn announced the acquisition of Finimize, an information service popular with millennial traders. Interactive Investor could of course add the transaction capabilities to this audience.
“Content plus transactional capability is not a new story – AJ Bell acquired Shares magazine back in 2012. I suspect we’ll see a returned focus to DIY investing from the Big Boys – but after a decade of technological transformation and focus, they know they need content and customers as well as transactions and tech. It should be an interesting few years ahead.”
