Interactive Investor (“ii” or “the Company”), the UK’s second largest investment platform, has agreed to acquire Alliance Trust Savings (“ATS”), from Alliance Trust PLC, for a total consideration of £40m subject to post completion adjustments, and includes Alliance Trust’s office building in Dundee, where ATS is based. The transaction brings together the two largest fixed price retail investment platforms, combining the content and digital capabilities of ii with ATS’ well-established adviser business and its investment trust heritage.
ii is committed to championing informed investment choice and value for its customers. In an increasing technology and data-driven environment, increased scale will support ii’s sustained investment in technology and talent, enabling the provision of the best customer experience and service in the sector.
ii is majority owned by JC Flowers and currently has £90m of net assets, with assets under administration (“AUA”) of £20 billion and more than 300,000 customer relationships. On completion of the transaction, this is expected to increase to £35 billion of AUA and 400,000 customers. Both ii and ATS customers will benefit from ii’s increased scale, financial strength and profitable business model. By leveraging ii’s growing scale and financial strength the Company will be well placed to make further investment in technology, products, staff and customer services.
ii has a strong track record of acquiring, integrating and investing in complementary platform businesses. The Company successfully completed the acquisition of TDDI in 2017, and last October acquired and integrated the white label share-dealing businesses from Trustnet Direct, Telegraph Investor, The Motley Fool and SharePrice.
Richard Wilson, CEO of ii commented: “This is another important step in our ambition to build the UK’s best investment platform. The acquisition brings together the country’s two largest fixed price providers, adding significant scale to ii, and reinforcing our ability to deliver excellent choice, value and service to all our customers.”
Lord Smith of Kelvin, Alliance Trust PLC’s Chairman, commented: “The Board is pleased to announce the sale of ATS to Interactive Investor. The two businesses are highly complementary and ATS customers, many of whom are Alliance Trust shareholders, will benefit from Interactive Investor’s similar flat-fee structure, as well as its increased scale and focus. A key consideration for the Board was a commitment to maintaining ATS’ presence in Scotland. We are therefore very pleased that ii plans to invest in ATS’ Dundee operating centre.”
Rothschild is advising ii on the acquisition of ATS and Evercore is advising Alliance Trust PLC.The sale is subject to regulatory approval from the PRA and FCA.