Interactive Investor has announced the disposal of its Luxembourg subsidiary, Internaxx Bank to Swissquote Group.
The disposal, which is subject to regulatory approval of the CSSF and the ECB in Luxembourg, is in line with Interactive’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.
The sale of Internaxx follows a period of significant progress for Interactive Investor since the firm’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 £20bn and more than 300,000 customer relationships. Customers have benefited from the retention of the best elements of both brands, such as simple low pricing and leading class international multi-currency dealing services.
Interactive Investor, which is majority controlled by JC Flowers, the leading Private equity firm, 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 2.2m customer accounts opened in the same period. Interactive Investor has approximately 10% of the UK direct to consumer investment platform market.
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.”