Fri, 17 Jan 2025 | BUSINESS SALE
Listed firm IG Group Holdings has bought investment platform Freetrade in a deal worth £160 million.
IG, a derivatives trading firm, said the all-cash deal would strengthen its UK trading and investments offering.
London-based Freetrade gives investors access to more than 6,200 global stocks and ETFs, fractional shares, UK Treasury bills, ISAs, SIPPs, securities lending and proxy voting via a subscription platform.
Launched in 2018, Freetrade has become one of the most successful emerging players in the UK market with 720,000 customers and Assets Under Administration of £2.5 billion.
In 2024, its revenue increased 32 per cent year-on-year to £27.5 million, with positive EBITDA for the first time.
It has been boosted by the growing popularity of self-directed investing – essentially people making their own investment decisions rather than leaving it to professional fund managers and stock pickers - greater individual responsibility for retirement planning, increased pension freedoms, digitalisation of services and growing financial literacy.
IG said the direct investing market is growing at 10 per cent compounded annually and is forecast to continue to rise.
“This is an exciting opportunity to accelerate our growth and delivery of new products and features on our award-winning platform,” said Viktor Nebehaj, CEO and co-founder of Freetrade. “IG’s vision for Freetrade is closely aligned with our own and its backing will be of huge benefit as we continue to scale the business.”
“This is a rare opportunity to strengthen IG’s UK trading and investments offering and broaden our target addressable market,” said Breon Corcoran, CEO of IG. “Freetrade is one of the most successful emerging players in the UK direct-to-customer investment market, with a strong brand, highly scalable technology and delivering rapid growth. I am delighted that Viktor and his team will join IG and continue to lead Freetrade.”
IG said it will operate Freetrade as a standalone business with its own brand, existing management team and operational platform. It will expand its product range, hire talent, add new features and increase marketing activity to accelerate growth. IG plans to reinvest the majority of Freetrade's forecast profit in growing the business over the next two years.
Completion is subject to customary conditions including regulatory approvals and is currently expected in mid-2025.
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