Abrdn completes Interactive Investor acquisition

Abrdn has completed the acquisition of Interactive Investor (II), after receiving the regulatory consents and shareholder approval required to conclude the transaction.

The £1.49bn acquisition was announced in December 2021, and has been hdescribed as a growth driven acquisition, with the II brand expected to "substantially" increase scale and expand the company's addressable market.

Indeed, Abrdn confirmed that, as a high-growth, high margin business, II is expected to be double-digit accretive to Abrdn's adjusted earnings.

The acquisition will also allow II, which has assets under administration of around £59bn, to drive its next stage of growth, and gain access to Abrdn’s advice, research and wealth management capabilities to grow its position in the UK’s savings market.

No changes are expected for II customers, with the company to continue to operate as a standalone business and independent brand on its existing technology platform.

II CEO, Richard Wilson, will also continue to lead under Abrdn’s ownership and the business will retain its own executive committee management team, although this will be alongside a new board.

Commenting on the deal, Wilson said: “In the past five years, we have built a strong digital consumer business. Despite volatile market conditions in 2021, we have continued to grow revenue and customer numbers.

“Today we join a company with a deep financial services history, and with a shared vision for the future. The opportunities that come with joining the Abrdn family are significant. We will be working with Abrdn’s talented team to harness their advice, wealth management and research capabilities for the benefit of our customers.

“Our success has been based on an open inclusive team culture that puts customers first, focuses on operational strength, and provides the best technology and campaigns for our customers interests.

"This won’t change; we’ll continue to offer our fair subscription pricing, whole of market choice and will continue to improve our services and content to ensure we remain the retail investment platform of choice and help drive future growth.

“As we begin the next phase of our story, the ii leadership would firstly wish to thank all of our colleagues for their dedication and professionalism through what has been an extraordinary journey.

“We would like to thank JC Flowers for their support and quality of stewardship. Thanks also to our wider shareholders for their enduring support, and considerable patience. And thank you to the ii Board for their contribution in successfully navigating the business through its growth journey leading us to where we are today.”

Adding to this, Abrdn CEO, Stephen Bird, said: “The acquisition of II is a transformative deal for Abrdn’s personal vector, and marks an important step forward in delivering our strategy for client-led growth.

“ii’s high-tech direct investing service is the perfect complement to the high-touch wealth and financial planning capabilities we already offer.

“As a leading player in a fast-growing market, with a scalable technology platform and a distinctive subscription-based model, the acquisition of ii will also diversify and grow our revenues.

"We would like to welcome Richard and the team to Abrdn and look forward to working together to build the best savings and wealth offer in the market for our customers.”

    Share Story:

Recent Stories


Time for CDI
Laura Blows speaks to AXA Investment Managers (AXA IM) senior portfolio manager for fixed income, Rob Price, about cashflow-driven investing (CDI) in Pensions Age’s latest video interview

Closing the gender pension gap
Laura Blows discusses the gender pension gap with Scottish Widows head of workplace strategic relationships, Jill Henderson, in our latest Pensions Age video interview

Keeping on track
In the latest Pensions Age podcast, Sophie Smith talks to Pensions Dashboards Programme (PDP) principal, Chris Curry, about the latest pensions dashboards developments, and the work still needed to stay on track
Building investments in a DC world
In the latest Pensions Age podcast, Sophie Smith talks to USS Investment Management’s head of investment product management, Naomi Clark, about the USS’ DC investments and its journey into private markets

Advertisement