Octopus set to buy Virgin Money's investment division
In a significant move, financial services firm Octopus Money has agreed to acquire Virgin Money's investment business. The deal, subject to approval by the UK Financial Conduct Authority (FCA), will add approximately 150,000 investment customers to Octopus Money's rapidly growing direct-to-consumer (D2C) wealth platform.
Upon completion, the Virgin Money brand for this investment business will be discontinued, with operations rebranded to Octopus Money. The acquisition is part of Octopus Money’s long-term strategy to reshape UK financial advice by integrating smart technology with expert personal support, improving the client experience and expanding access to affordable, high-quality investment advice.
Virgin Money’s CEO of Investments, Rich Milne, expressed confidence that Octopus Money is a suitable home for their investment business, emphasizing shared values and commitment to customer service. Octopus Money’s CEO, Ruth Handcock, highlighted that the acquisition will accelerate growth and reach more customers with straightforward, affordable investing combined with personalized advice.
Currently, Octopus Money collaborates with key employers in the UK to provide one-to-one personalized support to over 250,000 employees. However, further details about this collaboration were not provided in the article.
The acquisition will include investment accounts such as Stocks and Shares ISAs, Investment Accounts, and pensions, but does not affect other Virgin Money banking services, which are now focused on after Virgin Money’s acquisition by Nationwide in October 2024.
Initially, Virgin Money’s customers will continue to be supported by their existing teams, with no immediate service changes. The financial specifics of the deal remain undisclosed. The article does not mention any changes to the management or staff of either Octopus Money or Virgin Money's investment business as a result of the acquisition.
Upon completion of the deal, Virgin Money's investment business will be rebranded and operate under the Octopus Money brand. The rebranding process and timeline for the deal's completion were not specified in the article.
Octopus Money launched its own investment platform two years ago to offer financial planning services. The acquisition marks a significant step for the company in its mission to become the UK's leading D2C investment platform, offering a unique combination of digital investment access and personalized, human-led financial planning.
According to its website, Virgin Money is a full-service bank offering retail and business banking services. The impact of the acquisition on the overall financial health of both Octopus Money and Virgin Money was not discussed in the article. Regulatory transition planning is underway, and more updates are expected as the deal progresses.
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