Shares in Scottish financial services giant abrdn rose more than 3.2% to 263.9p today (November 8) after it confirmed talks to potentially acquire online platform Interactive Investor.
Edinburgh-headquartered abrdn is reportedly lining up an offer that would value Interactive Investor at around £1.5 billion.
In an announcement to the London Stock Exchange, abrdn – formerly Standard Life Aberdeen (SLA) – said: “There can be no certainty that these discussions will result in a transaction and a further announcement by the company will be made as and when appropriate.”
Acquisition mode
The interest in Interactive Investor comes hot-on-the-heels of abrdn acquiring subscription-based investment platform Finimize – boasting more than one million subscribers to its daily newsletter – for an undisclosed sum.
Interactive Investor is currently owned by US-based private equity investor JC Flowers & Co.
The website has been helping investors for more than 25 years and says it is now the UK’s number one flat-fee investment platform, with in excess of 400,000 customers.
It boasts assets under administration approaching £55 billion.
Vowel-light abrdn (formerly Standard Life Aberdeen) gets off to a good start in the FTSE 100
For a flat monthly the service provides a secure home for pensions, individual savings accounts and a wide range of other investments.
It also offers a wide choice of more than 40,000 UK and international investment options, including shares, funds, trusts and exchange-traded funds.
In addition, it offers users impartial content from financial journalists and other investors, as well as daily newsletters and insights.
Earlier this year, SLA sold financial advice platform Parmenion to private equity firm Preservation Capital Partners in a £102 million deal.
Flotation plan up in the air
According to Sky News, abrdn is in exclusive talks over Interactive Investor and hopes to complete a deal in the next fortnight.
A takeover would end Interactive Investor’s plans to float on the stock market.
Other reports suggest flotation talks are continuing in case the abrdn interest fizzles out.
Interactive Investor is the second biggest player in UK’s “DIY” investment market after Hargreaves Lansdown.