MMC portfolio company Interactive Investor has announced the acquisition of TD Bank Group’s European direct investing business.

The acquisition will be financed by private equity firm JC Flowers & Co, who will take a majority stake in the combined online broker group. The transaction is set to close in Q1 2017, and the new II will be the lowest-cost full service retail fintech platform, with over 300,000 users and assets under administration of £18bn.

The new business will be led by Interactive Investor chief executive Adam Seale. Post-closing, Interactive Investor and TDDI customers will enjoy the benefits of a business with the scale and financial strength to invest in leading technology, products and services.

MMC managing partner Bruce Macfarlane commented:

“As the largest single shareholder in Interactive Investor we have been a big supporter of the company’s ambitions to become the leading low-cost retail fintech platform in the UK. The acquisition of TD Bank’s European direct investing business is a huge advance in the realisation of that goal. The combined business will have over 300,000 customers and constitute the UK’s second largest online broker. This is tremendously exciting platform on which to build further.“

You can read more on this deal from CityWire, The Telegraph and FT Adviser.