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Interactive Investor announces takeover deal to create UK's second largest online broker

William Turvill
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Online brokers deal
The online broker combination is expected to be second only Hargreaves Lansdown in size (Source: Getty)

Interactive Investor has agreed a takeover deal for TD Bank’s European direct investing business to form the UK’s second largest online broker.

The transaction, which will create a firm with 300,000 customer relationships and assets under administration of £18bn, is being financed by JC Flowers & Co funds.

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The private equity firm will take a majority stake in the combined online broker group, which it is thought will be second only to Hargreaves Lansdown in size and offer customers access to 32 markets in nine currencies.

The deal, which will see Interactive Investor acquire the shares of TD Wealth Holdings and TD Bank International S.A. (collectively TDDI), is expected to close in the first quarter of 2017.

Interactive Investor chief executive Adam Seale, chairman Hugo Van Vredenburch and chief financial officer Barry Bicknell will remain in their positions, while TDDI chief executive John Tracy will continue to assist during a transitional period.

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Seale said:

This combination will bring real benefits to both InteractiveInvestor 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. We look forward to welcoming all our new customers to Interactive Investor and championing the needs of individual investors.

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