Virgin Money’s Shares Rose 1.56% After Acquiring Abrdn’s Stake

The Virgin Money UK PLC (LON: VMUK) share price rose 1.56% after announcing that it had finalised a deal to acquire Abrdn's share in its investment service for £20 million, marking a significant step less than a year since the service was offered to the public.

In 2019, Virgin Money collaborated with the investment powerhouse Abrdn to launch Virgin Money Investments, diversifying beyond its core retail banking services, including savings and loan products.

The bank introduced a modern digital service and a mobile application in April of the previous year, enabling users to select from various investment options. Additionally, it expanded its offerings to include a pension scheme, allowing individuals to start saving with a minimum of £25 monthly or transfer existing pensions to the service.

By the previous year's close, Virgin Money Investments oversaw approximately £3.7 billion in assets and attracted over 150,000 customer accounts.

With around 6.6 million customers in the UK, Virgin Money's acquisition of Abrdn's 50% ownership in the investment platform is aimed at bolstering its growth prospects. This includes a goal to double its managed assets within the next five years.

Allegra Patrizi, the bank's managing director for business and commercial, commented that the partnership with Abrdn has been instrumental in providing a new investment solution that offers customers simple and effective investment options. 

She noted that taking complete ownership of Virgin Money Investments will enable integrating investment and pension services with other bank services like deposits, mortgages, credit cards, and everyday banking. This integration is expected to empower more customers to invest confidently for their future while significantly increasing the bank's managed assets.

Virgin Money plans to integrate the investment service's staff into its broader organisation without anticipated job losses. Furthermore, Abrdn will continue to offer investment counsel for the platform, maintaining a role in supporting the investment service post-acquisition.

Virgin Money share price. 

The Virgin Money share price rose 1.56% to trade at 157.93p from Wednesday’s closing price of 155.50p.