12th Oct 2016 13:52
LONDON (Alliance News) - Interactive Investor PLC said Wednesday it has agreed to buy TD Bank Group's European direct investing business in a move that will create the UK's second largest online investment broker, behind Hargreaves Lansdown PLC.
The deal will create a broker with around GBP18 billion in assets under administration and 300,000 customers.
The enlarged company is set to become the closest challenger in the online retail investment sector to Hargreaves Lansdown, which reported GBP61.70 billion in assets under administration at the end of June.
Interactive Investor will acquire the shares of TD Wealth Holdings Ltd and TD Bank International SA for an undisclosed amount. The acquisition will be financed via an investment from funds advised by JC Flowers & Co LLC, which will have a majority shareholding in the combined business.
The deal is expected to close in the first quarter of 2017, subject to regulatory and shareholder approval. Top management positions will be taken by Interactive Investor staff as Chief Executive Officer Adam Seale, Chairman Hugo Van Vredenburch, and Chief Financial Officer Barry Bicknell will continue in their roles in the enlarged company. The current chief executive officer of the TD bank direct investing business, John Tracy, will "assist during a transitional period", said Interactive Investor.
"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," said Seale in a statement.
By Adam Clark; [email protected]
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