London-listed broker IG Group has acquired retail stockbroker Freetrade in a deal worth £160m or £1.19 per share.
Freetrade was set up in 2016 by Adam Dodds and was the first firm to attempt launch a new, simple to use platform with no dealing fees for stockbroking.
Freetrade CEO and Co-Founder Viktor Nebehaj announced the news in an email to customers and investors.
“Freetrade is in the best position we’ve ver been in as a business,” he said. “We’ve just closed our best year of performance ever with revenues up 32% compared to 2023, AUA of £2.5bn, and £2.1m of EBITDA.”
The deal is subject to regulatory approvals but, assuming those go through, will close later this year. Freetrade will also operate as a standalone entity within IG Group.
In its own statement, the company said that its investment in Freetrade was driven by the growth potential for the D2C investment market in the UK. IG said it will look to expand Freetrade’s product range and will reinvest profits over the next two years to further its growth.
“This is a rare opportunity to strengthen IG’s UK trading and investments offering and broaden our target addressable market,” said IG CEO Breon 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. I am delighted that Viktor and his team will join IG and continue to lead Freetrade.”
