By Scott Wright

EDINBURGH-based fund management giant abrdn has completed its £1.5 billion acquisition of Interactive Investor.

Stephen Bird, chief executive of abrdn, reiterated his view yesterday that the deal – the biggest to be finalised since he became chief executive in 2020 - will be “transformative” to abrdn’s personal financial planning business.

It gives abrdn control of a business that provides services such as share dealing and portfolio management technology for around 400,000 customers, with nearly £60 billion of assets under administration.

Manchester-based Interactive, which had been controlled by JC Flowers since 2016, has become a leading player in internet-based platforms that allow private investors to manage their portfolios.

Mr Bird said: “The acquisition of interactive investor is a transformative deal for abrdn’s personal vector, and marks an important step forward in delivering our strategy for client-led growth. ii’s high-tech direct investing service is the perfect complement to the high-touch wealth and financial planning capabilities we already offer.

“As a leading player in a fast-growing market, with a scalable technology platform and a distinctive subscription-based model, the acquisition of ii will also diversify and grow our revenues.”

Richard Wilson, chief executive of ii, said: “Today we join a company with a deep financial services history, and with a shared vision for the future. The opportunities that come with joining the abrdn family are significant.”

Shares in abrdn closed up 2.3p at 198.45p.