AJ Bell sells Platinum SIPP and SSAS business for up to £25 million
Why we think this is good
The sale of AJ Bell's Platinum SIPP and SSAS business for up to £25 million is a positive development for the company. The sale price seems reasonable compared to the size of the business being divested, and the proceeds will strengthen AJ Bell's capital position. However, the sale does not represent a transformational event or a significant profit upgrade, so the sentiment is capped at 'Good' in line with the Very Good rating constraint.
Key Points
- AJ Bell to sell Platinum SIPP and SSAS business to InvestAcc Group Limited
- Total consideration of up to £25.0 million, comprising £18.5 million on completion and £6.5 million of deferred consideration
- Platinum SIPP and SSAS business has 3,600 customers and £3.2 billion of assets under administration
- Platinum SIPP and SSAS business contributed £10.0 million to AJ Bell's non-platform revenue in FY2024
- Sale expected to complete in the second half of 2025
- Profit on disposal of up to £25.0 million less transaction costs to strengthen AJ Bell's capital position
Summary
AJ Bell plc has agreed to sell its Platinum SIPP and SSAS business to InvestAcc Group Limited for a total consideration of up to £25.0 million. The business has 3,600 customers with £3.2 billion of assets under administration, and contributed £10.0 million to AJ Bell's non-platform revenue in the year ended 30 September 2024. The sale is expected to complete in the second half of 2025 and will result in a profit on disposal of up to £25.0 million less associated transaction costs, which will further strengthen AJ Bell's capital position.