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IG Group Holdings plc has announced plans to acquire Freetrade, the commission-free investment platform, for £160 million in cash, marking a significant strategic move under new Chief Executive Breon Corcoran to expand its UK retail trading and investment offerings.
The deal, expected to complete in mid-2025 subject to regulatory approvals, will see IG Group acquire one of the fastest-growing platforms in the UK self-directed investment market. Freetrade has built a substantial presence since its 2018 launch, accumulating £2.5 billion in assets under administration (AUA) and 720,000 customers by the end of 2024.
"This is a rare opportunity to strengthen IG's UK trading and investments offering and broaden our target addressable market," said Corcoran. "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."
The acquisition comes as Freetrade demonstrates strong momentum, with revenue rising 32 per cent year-on-year to £27.5 million in 2024, including a record fourth quarter performance of £8.3 million. The platform achieved positive adjusted EBITDA of £2.1 million in 2024, compared to a loss of £8.6 million in 2023, as it reached scale in an important growth phase.
Freetrade's current CEO and co-founder Viktor Nebehaj will continue to lead the business, which will operate as a standalone unit maintaining its brand and operational platform. "This is an exciting opportunity to accelerate our growth and delivery of new products and features on our award-winning platform," said Nebehaj. "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."
The platform has shown particular success in growing its higher-value customer base, with the number of clients holding over £10,000 in assets increasing from 27,000 to 41,000 by the end of 2024. Net flows in 2024 represented 22 per cent of starting AUA, while the platform maintains a 93 per cent customer retention rate.
IG Group plans to accelerate Freetrade's development by investing in product expansion, talent acquisition, new features, and increased marketing. The company expects to reinvest the majority of Freetrade's forecast profit into growing the business over the next two years.
The acquisition will be funded from existing capital resources, with IG Group reporting surplus regulatory capital of £638 million as of 31 May 2024. The company expects to extend its current £150 million share buyback programme, announced in July 2024, in the second half of the fiscal year, subject to regulatory approval.
The deal positions IG Group to capitalise on structural growth in the UK direct investing market, which has grown at a compound annual rate of 10 per cent from 2018 to 2023. The company cited several growth drivers, including increased self-directed investing, greater individual responsibility for retirement planning, and growing financial literacy.
