Octopus Money has agreed to purchase Virgin Money’s investment business in order to significantly accelerate its growth in the direct-to-customer (D2C) wealth market.
The deal, which is subject to FCA approval, will add 150,000 customers to Octopus Money’s fast-growing business.
Once completed, Octopus said it will strengthen its position as the “only D2C investing platform in the UK to combine digital access to investments with human-led financial planning that’s accessible to all”.
Virgin Money’s investment customers will continue to be supported by their existing teams, with no changes to their service.
Following the deal’s completion, the Virgin Money brand name will no longer be used and the company will begin operating under an Octopus Money brand.
Octopus described the acquisition as “a major step in its long-term strategy to reshape financial advice in the UK”.
Octopus Money was founded to give people greater confidence about their financial future, and close the gap that has left millions without access to money advice.
Two years ago, it launched its own investment platform, offering simple, low-cost ways to manage savings and investments, closely integrated with financial planning.
Since then, tens of thousands have started investing through the platform, with many going on to build long-term plans with Octopus Money’s advisers and coaches.
Octopus Money moves assets onto Seccl-powered platform | Money Marketing
Ruth Handcock, CEO at Octopus Money, said: “We’re thrilled to be expanding this part of the business by welcoming the brilliant team and customers from Virgin Money Investments – a company that shares our belief in making it easier for people to invest.
“Together, we’ll reach even more people with high-quality advice and straightforward, affordable investing – powered by smart technology and a human touch.”
Rich Milne, CEO of Virgin Money Investments, said: “I believe that the sale of our business to Octopus Money is an excellent outcome for our customers, our people and our business’s future.
“I’m really excited by the opportunity this gives us to grow, build our product offering and embrace a new, iconic brand. Octopus Money shares our values and is committed to supporting customers with great service and expert, personalised support.
“Together, we’ll be able to help more customers achieve their investing goals. I am confident this next chapter will be a positive one for everyone involved.”