Interactive Investor, Moneywise’s parent company, has agreed to buy TD Direct Investing, TD Bank Group's European investing business, in a move that will create the second largest online stockbroker in the UK.
On completion of the deal, which is subject to regulatory approval, the combined business will serve 300,000 customers in the UK, with £18 billion investments.
The deal is expected to complete in the first quarter of 2017, though there will be “no immediate change” for customers of Interactive Investor or TD Direct Investing, according to the announcement from Interactive Investor.
The deal is being funded by private equity company JC Flowers, which specialises in financial services.
Adam Seale, chief executive of Interactive Investor, says: "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.”
Leo Salom, executive vice president, TD Wealth, TD Bank Group, says: "We're very pleased to have reached this agreement with Interactive Investor, a highly regarded team who will ensure that TDDI customers continue to have access to excellent products, services and technology to meet their investing needs for the long term. With this transaction, we will remain focused on our core areas of growth in North America."