Alliance Trust Savings (ATS), which has £7.2bn in assets, will add Stocktrade’s 48,000 customers, boosting its customer base to 105,000. Assets will also rise to £11.5bn after the deal completes.
The group said the acquisition would allow it to achieve higher economies of scale across both businesses.
“Our strategy for ATS is to grow the business organically, but when appropriate acquisition opportunities present themselves that fit with our stringent criteria then these will be assessed,” Alliance boss Katherine Garrett-Cox said. “The acquisition by ATS of Stocktrade is an example of us putting this strategy into action and pursuing our ambitious growth targets.”
Stocktrade, which reported revenues of £9.64m last year, offers online investment services for retail investors such as online share dealing.
Brewin Dolphin boss David Nicol said the sale would help streamline the company.