IG Group Holdings PLC on Thursday said it will acquire digital investment platform Freetrade.

The London-based online stockbroker paid £160 million for the financial technology company, also based in London.

Freetrade launched a commission-free, self-directed investment platform in 2018 and according to IG Group, is leading the UK’s emerging direct-to-consumer investment market.

The platform gives its 720,000 customers access to around 6,200 global stocks and other types of securities. Assets under administration totalled £2.5 billion at the end of 2024, and full-year revenue rose in 2024 to £27.5 million, up 32% on-year.

Under the new deal, IG Group will operate Freetrade as a standalone business, and the platform’s existing management will stay on to continue upscaling.

‘This is a rare opportunity to strengthen IG’s UK trading and investments offering and broaden our target addressable market,’ noted Breon Corcoran, IG Group’s chief executive officer.

IG Group expects the takeover to complete in mid-2025.

Over the next two years, IG Group plans to reinvest most of Freetrade’s profit in growing the platform. The online stockbroker is funding the takeover through existing capital, and expects returns on capital investment to exceed the weighted average cost of capital once in years three to five of ownership.

As of May 31, IG Group’s surplus regulatory capital was £638 million, with strong headwinds expected to continue after the deal closes.

IG Group’s previously announced buyback scheme for £150million in shares will be extended in the second half of financial 2025, subject to approval. The stockbroker is due to publish half-year results on January 23.

Following Thursday morning’s announcement, IG Group shares rose 0.7% to 1,030.00 pence each in London.

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