abrdn plc ("the Company") today announces that, having received the regulatory consents and abrdn Shareholder approval required to conclude the transaction, it has completed the acquisition of interactive investor ("ii").

Stephen Bird, Chief Executive, abrdn plc, commented:

“The acquisition of interactive investor 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.”

Richard Wilson, Chief Executive, interactive investor, said:

In the past five years, we have built a strong digital consumer business. We’ve successfully consolidated the UK platform market while creating better customer outcomes, and in doing so have grown our assets under administration from less than £5bn to c.£59bn1. Despite volatile market conditions in 2021, we have continued to grow revenue and customer numbers.

“With increased scale has come innovation, a powerful campaigning voice, and even better value, stamping out exit fees along the way.

“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.

Benefits of the acquisition

This is a growth driven acquisition for abrdn’s Personal vector. interactive investor substantially increases scale and expands the Company’s addressable market, creating a step change in our combined UK personal wealth offering and additional growth opportunities and diversification to abrdn’s revenue streams. interactive investor will be able to leverage abrdn’s deep expertise in financial advice, meticulous research and global perspective. In combination, interactive investor’s model broadens abrdn’s existing personal wealth offerings, from high-tech self-directed investing through to high-touch financial planning and discretionary investment management.

ii is a high growth, high margin business and is expected to be double-digit accretive to abrdn’s adjusted earnings 2.

Following the acquisition ii will continue to operate as a standalone business and independent brand using its existing technology platform. ii will remain firmly whole of market and all fund managers, including abrdn, will have to earn their place on ii’s rated investments.

A leading player in an attractive market

  • ii is the UK’s leading subscription-based direct investment platform, with over 400,000 customers.
  • ii has a market share of c.20%3 in a market that has been growing at a compound rate of c.15% per annum4.
  • ii has higher value customers than its peers, with assets under administration per customer of £145k1 .

1 As at 31 December 2021

2 abrdn expects the acquisition to be double-digit earnings accretive compared to standalone abrdn earnings in the first full financial year following completion based on the historic and projected profitability of ii and taking into account the beneficial elements and relevant costs of the acquisition

3Market share relative to direct investing market based on Fundscape, Direct Matters Q2 2021

4 Fundscape, D2C channel assets. Refers to period between 30 June 2015 and 30 June 2021

ENDS

Enquiries:

Institutional Investors

Catherine Nash

 

+44 (0) 7798 518 657

Media

Andrea Ward

Edelman Smithfield

Latika Shah

 

+44 (0) 7876 178 696

 

+44 (0) 7950 671 948

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