Interactive Investor is to acquire TD Bank Group’s European direct investment arm in a move which will create the UK’s second largest online broker.
The deal, which has been agreed for an undisclosed sum, will create a combined group of assets under administration of £18bn and 300,000 customers, subject to regulatory approval.
As part of the deal, Interactive Investor will acquire the shares of TD Wealth Holdings (UK), and TD Bank International.
It is being funded via an investment from JC Flowers, which on completion will have a majority shareholding in the combined business.
The combined company will be led by Interactive Investor chief executive Adam Seale.
In a statement from Interactive Investor, the company says there will be no immediate change for customers of either Interactive Investor or TD Direct.
Interactive Investor chief executive Adam Seale says: “This combination will bring real benefits to both Interactive Investor customers and TD Direct Investing customers.
“The enlarged Interactive Investor will have increased scale, expertise and resource, enabling it to provide customers with award winning online investment services at low charges. We look forward to welcoming all our new customers to Interactive Investor and championing the needs of individual investors.”
TD Bank Group executive vice president Leo Salom says: “We’re very pleased to have reached this agreement with Interactive Investor, a highly regarded team who will ensure that TD Direct customers continue to have access to excellent products, services and technology to meet their investing needs for the long term.”
JC Flowers head of Europe Tim Hanford says: “This transaction will create a new leader in the investment sector for private investors at a time of industry change due to the low rate environment and a refocusing of priorities by global financial services groups.
“We look forward to working with Interactive Investor to complete this complex acquisition from TD, and to establish the combined business on an efficient operating platform that delivers innovative wealth management services to all its customers.”