IG Group has acquired the UK-based stock trading app Freetrade in a surprise cash deal worth £160m, pending regulatory approval.
Investors were in shock on Thursday as IG Group agreed a cash deal to acquire UK-based investment platform Freetrade for £160m, subject to approval from the relevant regulatory bodies.
The FTSE 250 company, headquartered in London, has made the bold move as part of plans to broaden its appeal to UK traders by expanding its presence in the country.
Once the deal is ratified, IG Group will take full ownership of the trading platform’s assets, valued at £2.7bn, along with its customer base, which currently totals 720,000.
Upon announcing the acquisition in a stock exchange note, IG Group CEO Breon Corcoran said: “This is a rare opportunity to strengthen IG’s UK trading and investments offering and broaden our target addressable market.”
Corcoran made clear that the leadership team of Freetrade will retain their current positions, with the company continuing to operate as a commercially standalone entity while the business scales up.
He added: “Freetrade is one of the most successful emerging players in the UK direct-to-customer investment market… I am delighted that Viktor and his team will join IG and continue to lead Freetrade.”
Founded in 2016, before launching on iOS two years later, the platform offers commission-free trading on more than 6,200 stocks and ETFs, alongside fractional shares, UK Treasury bills, ISAs, SIPPs, securities lending, and other investment types.
Commenting on the prospective takeover, Freetrade co-founder and CEO Viktor Nebehaj said: “This is an exciting opportunity to accelerate our growth and deliver new products and features on our award-winning platform.
“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 impact of the deal could be transformative in terms of the UK’s online trading landscape, with the combination of Freetrade’s award-winning platform and solid customer base with IG Group’s impressive resources being a potential game-changer.
