Trading platform IG announced it has acquired neobroker Freetrade for £160m.

The deal is set to be complete by mid-2025, subject to regulatory approvals. Freetrade is expected to remain a commercially standalone business, with its own brand and existing management team.

The acquisition comes after Freetrade posted adjusted EBITDA of £2.1bn in 2024, compared to an £8.6m loss in 2023. The price IG paid for the business reflects an approximately five-times mark-up on Freetrade’s annual run rate revenue.

Breon Corcoran, CEO of IG, commented: “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.”

Jason Kennard, head of business development at thematic ETF specialist ARK Invest Europe, said the deal reflects IG’s desire to tap growing demand for ETFs and self-directed trading.

“With net flows in 2024 equivalent to 22% of starting assets under administration (AUA), Freetrade’s focus on ETFs aligns with IG’s ambition to capture a larger share of this rapidly growing segment,” Kennard said.

Evidencing the symbiotic growth of ETFs and DIY investing, German savings plan provider Scalable Capital partnered with DWS to launch an MSCI ACWI ETF last month.

In November, UK ETF-based investment platform InvestEngine debuted ‘LifePlan’ managed ETF portfolios.