Freetrade, the investment platform allowing self-directed trading, has struck a deal to be acquired by IG Group, which is listed on the London Stock Exchange, for £160 million.
Freetrade has reported a significant increase in assets, with a 52% rise leading to £2.5 billion in Assets Under Administration (AUA) by the end of 2024. The company also achieved a 32% growth in revenue compared to 2023, culminating in an EBITDA of £2.1 million for the fiscal year 2024. However, the business has encountered challenges, resulting in a valuation drop of 65% in 2023, falling from a peak of £650 million to £225 million, largely attributable to adverse economic conditions. In a move to tighten its financial position, Freetrade reduced its workforce by 15%, laying off roughly 45 employees from its 300-strong team, and subsequently closed its sole international arm in Sweden to concentrate on the UK market.
Investors from Crowdcube may see minimal returns from this acquisition, with Series B3 shares valued at just £2.60 each at the highest.
Freetrade’s co-founder and CEO, Viktor Nebehaj, expressed appreciation for the support received from crowdfunding investors throughout the firm’s journey. He emphasized that the partnership with IG Group, with its robust resources and support, presents a thrilling opportunity for Freetrade to expedite its growth and enhance its range of products and features.
Under the terms of the acquisition, Freetrade will maintain its operations as an independent entity, continuing to function under its established brand.