Interactive Investor has agreed to acquire TD Bank’s direct investing buiness in Europe for an undisclosed sum.
Under the deal, Interactive Investor will acquire the shares of TD Wealth Holdings and TD Bank International (Luxembourg).
The combined group will be the second largest online broker in the UK with £18bn in assets and 300,000 customers.
The acquisition is expcted to expand Interactive Investor’s geographical reach, and allow its customers to trade in 32 markets and in nine currencies.
The new group will be headed by Interactive Investor CEO Adam Seale. Interactive Investor chairman Hugo Van Vredenburch and the firm’s CFO Barry Bicknell will become the chairman and CFO respectively of the combined group.
The transaction is being funded by JC Flowers & Co funds, which will have a majority shareholding in the combined business. Existing shareholders of Interactive Investor participating in the deal will also become shareholders in the new group.
The deal is expected to be completed in the first quarter of 2017, subject to regulatory and Interactive Investor shareholders’ approvals.
"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,” Seale said.