Asset management giant Abrdn has confirmed plans buy a Manchester-based stock-picking platform in a deal worth almost £1.5bn.
The deal would see Abrdn acquire 100% of the shares in Interactive Investor.
In a statement issued to the London Stock Exchange, the buyer said the acquisition "will significantly enhance our presence and growth opportunities within a fast-growing and attractive market".
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Abrdn CEO Stephen Bird said: "This is a unique opportunity and a transformative step in delivering our growth strategy. interactive investor is the UK's number one subscription-based investing platform with a powerful reputation as a consumer champion.
"Abrdn's scale, resources, and shared vision will enable interactive investor to grow confidently and expand its leadership position in the UK's attractive savings and wealth market.
"I am delighted that Richard Wilson and his team will continue to lead interactive investor."
JC Flowers & Co has owned a majority stake in Interactive Investor, the UK's second-largest fund supermarket, since 2016.
Interactive Investor's CEO, Richard Wilson, added: "This is an exciting new chapter in our history and means that we can focus exclusively on serving those who matter most: our customers.
"We will have access to Abrdn's additional capabilities across research, advice and wealth management services, and we will benefit from being part of one of Europe's largest investment and wealth management firms, with a vision and values closely aligned to our own.
"Our management will remain the same, and the same extraordinary team will continually develop our service and technology, while maintaining our subscription pricing, our whole of market choice and the same campaigning spirit and editorial independence."
The approval of Abrdn shareholders is required and will be sought at the general meeting expected to take place in the first quarter of 2022. It is currently expected that completion will occur in the second quarter of 2022.
Interactive Investor's platform has more than 400,000 customers and assets under administration of approximately £55bn.
The Manchester-headquartered company also has offices in London and Leeds and employs about 777 people.
It generated adjusted profit before tax of £45.5m and reported profit before tax of £41.7m for the year ended 2020 and had gross assets of £636m as at 30 June 2021.
