interactive investor completes acquisition of Share plc

The enlarged business has assets under administration of around £36bn, further strengthening the voice for fair, flat fee pricing.

•  Share plc, and subsidiary The Share Centre Limited, are now part of the interactive investor group, the UK’s 2nd largest direct to consumer investment platform and the No.1 flat fee provider
• The enlarged business has assets under administration of around £36 billion, further strengthening the voice for fair, flat fee pricing
• On migration to ii’s platform, The Share Centre’s customers will have more shares and funds to choose from, offering direct trading on 17 global exchanges

interactive investor (or “ii”) is pleased to announce the completion of its acquisition of Share plc (which includes The Share Centre Limited, a subsidiary) by ii’s parent company, following receipt of all the necessary shareholder, regulatory and legal approvals. Accordingly, Share plc is now operating under common ownership with interactive investor, the second largest investment platform for retail investors in the UK and the number one flat fee provider.

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The completion of the acquisition, which was first announced on 17 February 2020, brings together two flat fee retail investment platforms, with common beliefs, values and complementary strengths.  interactive investor is the UK’s number one flat fee investment platform with around £36 billion of assets under administration (AUA).  

The Share Centre’s customers will benefit from ii’s scale and capability to grow and thrive in an increasingly technology-driven and competitive environment. ii’s existing scale, further supported by the addition of Share plc, will enable the enlarged business to make significant, ongoing investment in technology, customer experience and services. 

There are no immediate changes for any customers, with business as usual remaining for both The Share Centre and ii customers.  

In the coming weeks, The Share Centre customers will receive correspondence setting out next steps and what the move will mean for them. Until customers are migrated onto the ii platform, they can continue using their service as normal.  

ii and Share plc are committed to making investing as simple and cost effective as possible for their customers and the combined business will enable scale and synergy benefits. ii has an established track record of integrating complementary firms on-time, with minimal customer impact. ii customers currently benefit from:

• A choice of simple, flat fee pricing plans to suit different needs, so as wealth grows, customers get to keep more of it.
• Competitive flat fee trading charges, with free regular investing.
• More shares and funds to choose from, offering direct trading on 17 global exchanges.
• Award-winning original content and instrument agnostic investing insights, alongside     leading-edge technology, products and services.
• Super 60 rated funds, ACE 30, the UK’s first rated list of ethical investments, and model portfolios.
• Customer community, events and newsletters designed to aid better informed investment decisions.

All ii and The Share Centre customers’ cash and investments will continue to be covered by the Financial Conduct Authority Client Money and Asset Rules and protected by the Financial Services Compensation Scheme.  

interactive investor has a robust operating model with diverse revenue streams, net assets of £136 million and no external debt. It derives around 30% of its revenue from monthly fee income, which covers around 54% of its expense base. This means the company will remain profitable even in a low interest rate or reduced trading volume environment. 

It is now over 3 months since interactive investor started operating remotely, with over 90% of the team working from home since that time. We have proven our ability to service all our customers remotely which, combined with our resilient operating model and strong financial position, make us a safe harbour for investors and shareholders.

Richard Wilson, Chief Executive Officer of interactive investor, says: “I am very pleased to welcome The Share Centre to interactive investor, further strengthening the voice for flat fees. With our firms' shared values and combined strengths, we will continue to invest in award-winning content and services for our enlarged customer base, all for a simple flat fee. 

“We want to do as much as we can to make investing simple so more people can take control of their financial future. Having permanently scrapped exit fees 2 years ago and moved to a modern monthly subscription fee last year, where customers can choose the best price plan for them, in January we were also the first major platform to make regular investing completely free. In addition, in the past year we launched the ACE 30, the UK's first rated list of ethical investments. We need to keep creating better and better content and services, underpinned by the same monthly subscription.”

Interactive Investor was advised by Rothschild & Co and Herbert Smith Freehills and Taylor Wessing.

Gavin Oldham OBE, Executive Chairman of Share plc says: “We are delighted that  customers of The Share Centre will benefit from the combined strengths of both businesses, further enhancing the high-quality customer service The Share Centre has prided itself on for many years. Having spent time with the ii business in the lead up to today, it’s clear the two businesses are highly complementary and I am pleased that customers of The Share Centre will benefit from ii’s similar low flat-fee structure, as well as its increased scale and focus.

“We share a common culture of supporting savers and investors in reaching their financial goals through individual share ownership and personal investment across the United Kingdom, and I look forward to encouraging a more egalitarian and participative form of democratic capitalism as a board member of the combined business.”

Share was advised by Stephens Europe and Dechert LLP.