The acquisition comes hot on the heels of the purchase of Alliance Trust Savings and TD Direct Investing
Moneywise’s parent company interactive investor has agreed to buy The Share Centre.
On completion of the deal, which is subject to regulatory approval, interactive investor will acquire 300,000 customer accounts with assets under administration of over £6 billion. Online broker interactive investor currently has over £30 billion of assets under administration, over 300,000 customers and more than one million users.
The acquisition comes hot on the heels of interactive investor’s purchase of Alliance Trust Savings (in June 2019) and TD Direct Investing (June 2017).
Commenting on the offer, Richard Wilson, chief executive officer of interactive investor, notes the deal “brings further scale and the opportunity to deliver enhanced value, service and customer experience to an enlarged customer base".
He adds: “The firms’ shared values and combined strengths reinforce interactive investor’s position as a leader in the retail investment services marketplace. With our fair flat fees we have built a strong and compelling alternative to percentage fees, in a business that puts the customer first.
“Our purpose is to help customers take direct control of their financial future, providing tools and support to make informed investing decisions. This transaction contributes significantly to that goal.”
Gavin Oldham, executive chairman of Share plc, who along with his family own 68.9% of the issued share capital of Share plc, will be appointed to the board of interactive investor following completion of the deal.
Under the terms of the acquisition, Share plc shareholders will receive new interactive investor shares (representing 90% of the offer value) and cash (representing 10% of the offer value). The new interactive shares are unlisted securities, as the firm is not listed on the stock market.
The valuation agreed by both interactive investor and Share plc values each Share plc share at 41 pence, which represents a 41% premium to the closing price of 29 pence per share at the end of trading on 14 February.
Share plc shares will continue trading on the Aim market until the deal is completed, which is expected to occur during the third quarter of 2020.
Commenting on the deal, Gavin Oldham, executive chairman of Share plc, says: "I am delighted to welcome this combination of our businesses, designed to transform the prospects for individual share ownership and personal investment across the United Kingdom.
“Our shareowners, employees and customers are well aware of my passion for egalitarian capitalism, not only right across society but also across generations. It delivers the economic freedom that comes from having a personal reserve of savings and investment, and a society at ease with itself: as owners, employees and consumers combine ownership with a responsibility for all.”
This article was first published on Moneywise's sister publication Money Observer.