Interactive Investor to acquire Alliance Trust Savings in £40m deal

The UK’s second largest investment platform has acquired another rival as the wealth management sector consolidates further.

London city skyline
Source: Bloomberg

Interactive Investor has agreed to acquire its smaller rival Alliance Trust Savings from Alliance Trust in a deal valued at around £40 million.

Alliance Trust Chairman Lord Smith of Kelvin said in a statement: ‘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 low flat-fee structure, as well as its increased scale and focus,’ he added.

The deal, which is part of a wider trend towards consolidation in the wealth management industry, will see Interactive Investor increase it assets under management to £35 billion and add 100,000 new customers to its books, with a customer base of around 400,000 post-completion.

Interactive Investor continues to consolidate

‘This is another important step in our ambition to build the UK's best investment platform,’ CEO of Interactive Investor Richard Wilson said.

‘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,’ he added.

In June 2017, Interactive Investor completed its acquisition of TD Direct Investing, which created the second largest investment platform in the UK with assets under administration of £21 billion and over 300,000 customers. The deal was valued at around £65 million.

Interactive Investor’s decision to acquire Alliance Trust Savings will not only help it to bolster its position in the UK, but has helped Alliance Trust to finally find a new home for its lossmaking investment platform, which posted a loss of £19.3m in 2017.

Alliance Trust also divested its in-house investment management unit to Liontrust Asset Management in 2017.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Find articles by analysts