Interactive Investor (II) has completed its £40m acquisition of Alliance Trust Savings (ATS), following receipt of the necessary regulatory approvals.
The deal, which was first announced in October last year, brings together the two retail investment platforms with combined assets under administration (AUA) of £36bn and about 400,000 customers. ATS will now operate under the ownership of II.
ATS customers will be charged using II’s flat fee structure, announced in April, which it describes as a “Netflix style subscription”.
Important milestone
II chief executive Richard Wilson described completion of the acquisition as an “important milestone”.
He added: “It cements our position as the market challenger in the UK direct-to-consumer marketplace and adds essential scale to support the on-going technology and talent investment needed to drive our customers’ service experience ever higher.
“Our revolutionary new Netflix-style subscription plans are just part of that – in the past six months alone we have also delivered new customer tools, from our acclaimed, impartial Super 60 rated funds list to our award-winning app.”
Discussing the advised and partnership side of the ATS business, Wilson said “we have been talking and listening”.
“With the keys to the door, we can start to lay down plans. Meanwhile, advisers and partners should expect business as usual.”
Alliance Trust chairman Robert Smith said the sale completes its transformation into a “fully focused global equity trust”, which should improve returns to shareholders.
“On behalf of the board, I would like to take this opportunity to thank all the hard-working staff at ATS for their efforts over the years to build the business. We wish ATS every success as it continues to develop under its new owner.”
