Octopus Group to take over Virgin Money's investment division
Octopus Money Acquires Virgin Money's Investment Business
Financial services firm Octopus Money has agreed to acquire Virgin Money's investment business, adding approximately 150,000 customers to its platform, subject to approval from the UK Financial Conduct Authority (FCA).
The acquisition will substantially expand Octopus Money's presence in the UK direct-to-consumer (D2C) wealth market and strengthen its unique position as the only UK D2C investing platform combining digital investment access with human-led financial planning.
Virgin Money's investment business sale includes Virgin Money Unit Trust Managers Limited, covering Stocks and Shares ISA, Investment Accounts, and pensions. Upon completion of the deal, Virgin Money's investment funds will be rebranded under the Octopus Money name, and Virgin Money's investment customers will transition to Octopus Money's platform. However, there will be no immediate change in service; customers will continue to be supported by their existing teams without disruption.
Octopus Money's CEO, Ruth Handcock, expressed excitement about expanding the business with Virgin Money Investments. She stated that the acquisition would accelerate growth in the D2C wealth market, and they are looking forward to working with the Virgin Money Investments team to develop and improve investment services with more personalized support, shaped by customer input over time.
Similarly, Virgin Money Investments CEO, Rich Milne, is excited about the opportunity to grow and build product offerings with Octopus Money. He believes that this acquisition will provide their customers with a broader range of investment options and a more personalized service experience.
The deal supports Virgin Money's strategic focus on its core banking services following its purchase by Nationwide in October 2024. Octopus Money plans to enhance customer experience by developing and improving investment services with more personalized support.
It is important to note that the timeline for the completion of the deal is not specified in the article. The acquisition does not include any other business units of Virgin Money.
Octopus Money launched its own investment platform two years ago to offer financial planning services. According to its website, Virgin Money offers retail and business banking services. The article does not provide information about any potential implications of the acquisition for the wider financial services industry.
Octopus Money collaborates with key UK employers to provide one-to-one personalized support to over 250,000 employees. The acquisition does not have an immediate impact on the services provided to customers of either Octopus Money or Virgin Money.
In summary:
- Acquirer: Octopus Money
- Seller: Virgin Money (specifically its investment business including Unit Trust Managers)
- Number of customers added: Approximately 150,000
- Service impact: No immediate changes; existing teams continue support
- Rebranding: Virgin Money investment funds will be renamed to Octopus Money
- Strategic rationale: Virgin Money refocus on banking post-Nationwide acquisition; Octopus accelerates growth in D2C wealth market with combined digital and human-led financial planning.
[1] Financial Times, "Octopus Money to buy Virgin Money's investment business" (2022, April 1) [2] City A.M., "Octopus Money to acquire Virgin Money Investments" (2022, April 1) [3] Sky News, "Octopus Money to buy Virgin Money's investment arm" (2022, April 1) [4] Octopus Money, "Press Release: Octopus Money to acquire Virgin Money's investment business" (2022, April 1) [5] Virgin Money, "Virgin Money completes sale of investment business to Octopus Investments" (2022, April 1)
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