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Highlights

  • AJ Bell divests non-platform business: Sells Platinum SIPP and SSAS operations to InvestAcc for up to £25 million.

  • 3,600 customers to transfer: £3.2 billion in assets under administration to move to InvestAcc by the second half of 2025.

  • Strategic focus on core platform business: The sale strengthens AJ Bell’s capital position and aligns with its growth strategy.

In a strategic move to streamline its operations, investment platform provider AJ Bell plc (LSE:AJB) has announced the sale of its Platinum SIPP and SSAS business to InvestAcc Group Limited. The deal, valued at up to £25 million, is part of AJ Bell’s broader plan to focus on its core platform offerings and enhance its growth prospects in the UK investment market.

Under the agreement, AJ Bell will receive an initial payment of £18.5 million upon completion, consisting of £17.5 million in cash and £1 million in newly issued InvestAcc shares. The remaining £6.5 million will be paid in deferred cash, subject to specific conditions. The transaction is expected to be finalized in the second half of 2025.

AJ Bell Platinum currently serves 3,600 customers and manages £3.2 billion in assets under administration. Despite contributing £10 million to AJ Bell’s non-platform revenue in the year ending September 30, 2024, the divestment aligns with the company’s long-term vision. AJ Bell has confirmed that the sale will not impact its financial guidance for the 2025 fiscal year.

Following the completion of the transaction, AJ Bell will recognize a profit of up to £25 million, minus transaction costs. The proceeds will be incorporated into the company’s capital allocation framework, further strengthening its financial position.

Michael Summersgill, Chief Executive Officer at AJ Bell, emphasized that the sale is a key step in simplifying the company’s business model. "Our strategy is to provide easy-to-use, low-cost platform propositions using a single, scalable operating model to capitalize on the significant long-term growth opportunity in the UK investment platform market," Summersgill stated. He added that the move will enable AJ Bell’s leadership team to focus on growing its core platform business across both advised and direct-to-consumer segments.