INTERNEWSTIMES.COM – UK-based investment platform, has acquired the UK operations of Australian rival Stake. The deal will see Freetrade take on all of Stake’s UK clients and their assets, bolstering its domestic presence in a market increasingly dominated by larger players like Robinhood.
Stake, which launched its services in the UK in 2020, has decided to focus on its core markets of Australia and New Zealand. The company’s decision to exit the UK market comes after a recent business review.
The acquisition is a strategic move for Freetrade, which has been facing increasing competition from both established players and new entrants. The company is aiming to capitalize on the growing demand for online investment platforms in the UK, particularly among younger investors.
Freetrade and Stake have not disclosed the financial details of the deal, including the value of Stake’s UK customer book. However, the acquisition is expected to significantly increase Freetrade’s user base and assets under management.
The move comes at a time when Freetrade is experiencing positive momentum. The company reported its first-ever half-year profit in 2024, with adjusted earnings before interest, tax, depreciation, and amortization hitting £91,000 in the six months through June. Revenues climbed 34% year-over-year, to £13.1 million.
Freetrade CEO Viktor Nebehaj said in a statement, “This deal shows our commitment to capitalise on opportunities for inorganic growth to reach that goal. Over the last few months, we have worked closely with Stake to ensure a smooth transition and good outcomes for their UK customers. We look forward to welcoming them and continuing to support them on their investment journeys.”
The acquisition is expected to be completed in November, with Stake’s UK customers being contacted in the coming weeks with details on how to transfer their accounts and assets to Freetrade. (Red)
