Abrdn confirms £1.5bn Interactive Investor deal
Edinburgh firm has sealed II deal
Abrdn has confirmed the £1.5 billion takeover of Interactive Investor (II), the DIY stock-picking platform, from JC Flowers and key members of its management.
The move, which first emerged early last month, will transform the capabilities of the FTSE 100 asset manager – formerly Standard Life Aberdeen – in the growing self-investment sector.
II has an estimated £55bn assets under administration as at 30 June 2021 and 450,000 clients, giving it a market share of 15.5% in terms of DIY assets.
The deal will allow Abrdn to challenge firms such as London-listed Hargreaves Lansdown and AJ Bell and represents another bold move by CEO Stephen Bird since he took over in the summer of 2020 and began refocusing the company.
There will be no requirement for abrdn to raise fresh equity as it will be funded by cash.
It will also end II’s ambitions of joining its rivals as a separately quoted company, following months of preparations for a 2022 stock market flotation.
II will operate independently within abrdn and will continue to be run by CEO Richard Wilson.