IG Group Acquires Freetrade for £160 Million ($195M) in Major Investment Platform Deal
Hey FinTech Fanatic!
IG Group has announced the acquisition of UK neobroker Freetrade for £160 million (USD $195 million). The deal values Freetrade at approximately 5x its annual run rate revenues, based on Q4 2024 performance of £8.3 million, contributing to total 2024 revenues of £27.5 million.
Since its 2018 launch, Freetrade has built a significant market presence with 720,000 customers and £2.5 billion in assets under administration by the end of 2024. The company showed improving financial health in 2024, posting an "Unaudited adjusted EBITDA" of £2.1 million, compared to a £8.6 million loss in 2023.
The acquisition comes despite Freetrade's accumulated losses of nearly £100 million, including a £13.9 million loss in 2023 on revenues of £21.6 million, highlighting IG Group's focus on customer base and market position over historical performance.
Breon Corcoran, CEO of IG commented: “This is a rare opportunity to strengthen IG’s UK trading and investments offering and broaden our target addressable market. 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.”
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