Octopus Money has agreed to buy Virgin Money’s investment business for an undisclosed amount, subject to FCA approval.

The deal will add 150,000 customers to Octopus Money.

The firm said the deal will significantly accelerate its growth in the direct-to-customer wealth market.

After the deal is completed, the Virgin Money brand name will no longer be used and the company will begin operating under an Octopus Money brand.

Virgin Money’s investment customers will continue to be supported by their existing teams, with no changes to their service.

Ruth Handcock, CEO at Octopus Money, said: “Virgin Money Investments shares our belief in making it easier for people to invest. Together, we’ll reach even more people with high-quality advice and straightforward, affordable investing – powered by smart technology and a human touch.”

She said the acquisition is a major step in Octopus Money’s long-term strategy to reshape financial advice in the UK – combining digital tools with personalised support to help more people plan, save, and invest with confidence.

Rich Milne, CEO of Virgin Money Investments, said: “I believe that the sale of our business to Octopus Money is an excellent outcome for our customers, our people and our business’s future.”

Octopus Money was launched by the Octopus Group in May 2023.

The £12.5bn Octopus Group also owns companies like Octopus Energy, Octopus Investments and white label platform Seccl.

Ruth Handcock, CEO of Octopus Money, was awarded an OBE in the King’s Birthday Honours List for services to financial services and investments.

She became CEO of Octopus Money in 2023 after spending five years at CEO at Octopus Investments. She was a founding employee at challenger bank Tandem and is an independent non-executive director of Aldermore Bank.