Interactive Investor (ii) announced that it had reached agreement on terms with The Share Centre to combine their businesses, subject to shareholder, regulatory and legal approvals.

ii believes that direct to consumer platforms require scale to sustain the level of profitability necessary for significant and ongoing technology investment in customer experience and services. Therefore, there is a strong strategic rationale for consolidation amongst compatible groups. ii and The Share Centre believe that a combination of the two businesses would create a group of greater scale and capability to grow and thrive and to best serve its customers in an increasingly technology-driven and competitive environment.

The combined businesses would have more than 600,000 customers and £36 billion of assets under administration.

Commenting on the Offer, Richard Wilson, CEO of ii, said:

“We are delighted with this transaction. The firms’ shared values and combined strengths reinforce ii’s position as a leader in the retail investment services marketplace. With our fair flat fees we have built a strong and compelling alternative to percentage fees, in a business that puts the customer first.

Combining our individual strengths brings further scale and the opportunity to deliver enhanced value, service and customer experience to an enlarged customer base.

Our purpose is to help customers take direct control of their financial future, providing tools and support to make informed investing decisions. This transaction contributes significantly to that goal.”

Read more on this story via The FT and This Is Money.