Monday 22 October 2018 12:27 pm | Updated: Tuesday 21 May 2019 4:22 pm

Interactive Investor set to pay £40m for Alliance Trust Savings

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Interactive Investor, the UK's second largest investment platform, has bought rival Alliance Trust Savings in a £40m deal.

After the sale the combined business will have £35bn assets under management and the deal includes the sale of Alliance Trust's headquarters in Dundee.

London-based Interactive Investor is majority owned by private equity house JC Flowers and currently has assets under management of £20bn.

Interactive Investor chief executive Richard Wilson said: "This is another important step in our ambition to build the UK's best investment platform. The acquisition brings together the country's two largest fixed price providers, adding significant scale to Interactive Investor and reinforcing our ability to deliver excellent choice, value and service to all our customers."

"The two businesses are highly complementary and Alliance Trust Savings customers, many of whom are Alliance Trust shareholders, will benefit from Interactive Investor’s similar flat-fee structure, as well as its increased scale and focus," said Alliance Trust chairman Robert Smith.

"A key consideration for the board was a commitment to maintaining ATS's presence in Scotland. We are therefore very pleased that ii plans to invest in ATS’s Dundee operating centre."