The deal is another sign of how fierce competition is to lure small businesses InvestorsThose who are playing the market for the first time, or looking to manage already existing portfolios.
Interactive, which was founded in 1995, had planned to list its shares on the stock exchange but would instead seek refuge inside Abdern, which has overseas assets of around £530 billion.
CEO Richard Wilson will remain in his position, and will report to Stephen Bird, President of Abdrn.
Baird said: “This is a unique opportunity and a transformative step in implementing our growth strategy. Interactive Investor is the UK’s premier subscription-based investment platform with a strong reputation as a champion for consumers.
“abrdn’s size, resources and shared vision will enable Interactive Investor to confidently grow and expand its leadership position in the UK’s attractive savings and wealth market. I am delighted that Richard Wilson and his team will continue to lead the Interactive Investor.”
Wilson said: “This is an exciting new chapter in our history and means we can focus exclusively on serving those who are most important: our clients. We will have access to abrdn’s additional capabilities via research, advice and wealth management services, and we will benefit from being part of one of the largest investment and management firms. fortunes in Europe, with a vision and values closely aligned with ours.”
Interactive has 400,000 customers, putting it just behind Hargreaves Lansdown and slightly ahead of the fast-growing AJ Bell.
Formerly known as Standard Life Aberdeen, the roots of Abrdn go back to 1825. It has faced some criticism for its new name.