Interactive Investor Limited, the UK’s second largest investment platform,
has announced the disposal of its Luxembourg subsidiary, Internaxx Bank SA (“Internaxx”) to
The disposal, which is subject to regulatory approval of the CSSF and the ECB in Luxembourg, is in line with ii’s strategy to simplify its business and focus on the UK investment platform market. Internaxx was acquired by ii as part of the acquisition of TD Bank’s European direct investing business (“TDDI”).
The sale of Internaxx follows a period of significant progress for ii since the Company’s acquisition of TDDI in June 2017. This acquisition, and the subsequent high-speed integration of the businesses, created the UK’s 2nd largest investment platform, with assets under administration of £20 billion and more than 300,000 customer relationships. Customers have benefitted from the retention of the best elements of both brands, such as simple low pricing and leading class international multi-currency dealing services.
Following the TDDI integration, ii announced last October that it had reached agreement to acquire the Company’s share-dealing white label partners, including Trustnet Direct, Telegraph Investor, The Motley Fool and SharePrice. This successful period of consolidation and investment has significantly advanced ii’s strategic ambitions, enabling it to offer engaged retail investors a scaled platform, combining choice, service and low-cost. The public website was relaunched in June and ii continues to invest in technology to deliver best-in-class research, tools and support.
Interactive Investor, which is majority controlled by JC Flowers, is 100% equity funded, with no external debt and net assets of over £100m. Since 2013 the investment platforms
market has almost doubled in size to £500bn AUM, with an extra 2.2 million customer accounts opened in the same period. ii has approximately 10% of the UK direct to consumer investment platform market.
Interactive Investor was advised on the transaction by NIBC Bank.
Commenting on the disposal, Richard Wilson, CEO of Interactive Investor, said: “This last year
has been the start of an exciting journey as we continue to build the platform of choice for engaged retail investors. The disposal of Internaxx is another step in this journey, sharpening our strategic focus as we further invest in our leading flat fee investment platform. These are exciting times for the UK direct to consumer investment platform market, estimated to be worth circa £500bn. ii is well placed to further enhance its customer offering through both organic investment, and strategic acquisitions that add scale benefits to our valued customers.”