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Interactive Investor takeover deal to create online broker juggernaut

Online investment platform Interactive Investor has agreed to acquire TD Bank Group’s European direct investing business, in a move that will create the UK’s second biggest online investment broker.

The deal, which is for an undisclosed sum, is being financed by JC Flowers & Co funds and sees the London-headquartered online broker acquire the shares of TD Wealth Holdings Limited and TD Bank International.

As part of the deal, private equity house JC Flowers & Co will take a majority share in the new broker, which will be second only to Hargreaves Lansdown, with around 300,000 customers and assets under management totalling £18bn.

Bruce Macfarlane, managing partner at MMC Ventures, who are the largest single shareholder in Interactive Investor commented: “As the largest single shareholder in Interactive Investor we have been a big supporter of the company’s ambitions to become the leading low-cost retail fintech platform in the UK.

“The acquisition of TD Bank’s European direct investing business is a huge advance in the realisation of that goal. The combined business will have over 300,000 customers and constitute the UK’s second largest online broker. This is tremendously exciting platform on which to build further.”

The deal is expected to finalise in the first quarter of 2017.

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