Freetrade snapped up for £160m by IG but investors who bought via crowdfunding likely to lose out
Freetrade snapped up for £160m by IG but investors who bought via crowdfunding likely to lose out
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Online trading platform IG Group has acquired share dealing company Freetrade for £160million. The London-based FTSE 250 constituent said the purchase, which is set to be completed by mid-2025, will help to boost its UK trading and investing offering, as well as opening up new customer segments and capabilities.
Launched in 2018, Freetrade has 720,000 customers in the UK and £2.5billion under administration as of the end of 2024. Its net inflows in 2024 are equivalent to 22 per cent of its starting assets under administration. In September the company delivered its first ever profitable half-year since its inception.
Freetrade saw an operating profit of £91,000, swinging from a previous adjusted loss of £5.6million in the first half of its 2023 financial year. Freetrade also pulled out of the Swedish market in August in order to turn its focus solely to the UK market.
Even so, the platform's revenue grew by 32 per cent in 2024, reaching £27.5million, with a record revenue figure reached in the fourth quarter of the financial year. Acquisition: IG Group says its Freetrade purchase will offer a return on the £160million it is spending to acquire the platform.
Breon Corcoran, chief executive of IG, said: '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.'.
