REG - IG Group Hldgs plc - Acquisition of Independent Reserve

IG groupAnnouncement

19/09/2025 07:02

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RNS Number : 0371A  IG Group Holdings plc  19 September 2025

19 September 2025

LEI No: 2138003A5Q1M7ANOUD76

IG GROUP HOLDINGS PLC

Acquisition of Independent Reserve

IG Group Holdings plc ("IG", "the Group") is pleased to announce the
acquisition of Independent Reserve, a leading cryptocurrency exchange based in
Australia, for an initial enterprise value of A$178.0m (£86.8m)(1). The
bolt-on transaction accelerates IG's entry into cryptocurrency markets in the
Asia Pacific region and brings a talented team of crypto-native specialists to
the Group. It complements the strategic progress we have made to enhance our
crypto offerings organically in the UK and US. The deal follows an extensive
assessment of the cryptocurrency exchange sector and aligns with IG's
acquisition framework which evaluates opportunities based on strategic
alignment, deliverability and financial returns.

Matt Macklin, Managing Director of Asia Pacific & Middle East at IG,
commented: "This acquisition marks an important step in IG's crypto strategy
in a key region. Independent Reserve is one of Australia's largest and
fastest-growing digital asset exchanges with established regulatory
foundations, proven technology and strong leadership. I am delighted that the
Independent Reserve team will join IG as they embark on their next phase of
growth."

Adrian Przelozny, CEO and co-founder of Independent Reserve, said: "Joining IG
provides us with the platform to accelerate our growth. IG's vision aligns
with our mission to provide secure, regulated crypto trading and this
transaction will enable us to expand our product and market reach."

Strategic rationale for the transaction

Acquisition closes a key product gap in a priority region

·    Independent Reserve offers trading in 34 digital assets in multiple
currencies, serving retail and institutional customers, with permissions to
operate in Australia and Singapore. The transaction gives IG immediate access
to these markets and provides optionality to expand the offering across the
Asia Pacific and Middle East regions.

·    The leadership team and employees will remain with Independent
Reserve, and retain a collective 30% shareholding at completion, bringing
strong crypto-native expertise to lead future propositions at IG. Following
completion, the Group will retain Independent Reserve's brand and integrate
its product into IG's trading platforms, initially in Australia and Singapore.

Strong financial profile and growth momentum

·    Independent Reserve has strong growth momentum, with revenue in the
12-months ending 30 June 2025 of A$35.3m (£17.7m), increasing 88% on the
previous fiscal year and representing a CAGR of 70% over the prior two years.
Approximately 76% of revenue was generated in Australia and 24% in Singapore.
EBITDA in the 12-months ending 30 June 2025 was A$9.9m (£5.0m)(2).

·    Independent Reserve had c.11,600 average monthly active customers(3)
in the 12-months ending 30 June 2025, up 60% on the previous fiscal year and
representing a CAGR of 60% over the prior two years.

Key transaction terms and outlook

·    IG will acquire Independent Reserve for an initial enterprise value
of A$178.0m (£86.8m)(1) representing a multiple of 5.0x revenue for the
12-months ending 30 June 2025.

·    IG will acquire an initial 70% of Independent Reserve for a
consideration of A$109.6m (£53.4m), excluding the Group's expected share of
acquired surplus cash of A$8.4m (£4.1m). An additional payment of A$15.0m
(£7.3m) is contingent on performance in FY26, taking the consideration for
70% ownership to A$124.6m (£60.8m)(1).

·    IG has a call option to purchase the 30% stake that it will not own
at closing, with valuation based on performance in FY27 and FY28(4).

·    Completion is subject to regulatory approvals from MAS in Singapore
and FIRB in Australia and currently expected in early 2026.

·    The acquisition is expected to be cash EPS accretive in the first
full financial year post-closing (FY27) and achieve a return on invested
capital in excess of the Group's weighted average cost of capital in years
three to five (FY29-31).

Transaction complements IG's organic crypto rollout

The acquisition of Independent Reserve complements the strategic progress IG
has made to enhance its crypto propositions in the UK and US.

In the UK, the Group launched spot crypto trading in May 2025, becoming the
first UK-listed company to provide the product to retail investors. Launched
in partnership with Uphold, the offering includes 35 coins and is fully
integrated across the IG platform and IG Invest app.

In the US, tastytrade has expanded its product range to 23 coins and enabled
stablecoin account funding for investors across multiple blockchain networks.
This innovative funding method allows tastytrade customers around the world to
fund their brokerage accounts with stablecoins, 24/7/365, powered by Zero
Hash, the leading on-chain infrastructure provider.

Reporting calendar

As previously announced, IG will issue a Q1 FY26 trading update on 25
September.

 

Notes:

(1. ) Exchange rate as at 17 September 2025 of 0.49.

(2. ) Average exchange rate for the 12-months ending 30 June 2025 of 0.50.

(3. ) Active customers classified as customers that opened or closed a
position during a month. Counts are averages of monthly active customers in
the relevant fiscal year.

(4. ) Enterprise value of A$124.6m (£60.8m) for a 70% stake at closing,
including deferred consideration of A$15.0m (£7.3m) payable based on
performance in FY26. Enterprise value for the 30% stake that IG does not own
at closing capped at A$160.5m (£78.3m), resulting in a maximum total
enterprise value payable for 100% ownership of up to A$285.1m (£139.0m) in
the event of strong outperformance versus the base case business plan in FY27
and FY28.

 

Enquiries

 

IG Group Investor Relations

Martin Price

020 7573 0020

investors@iggroup.com (mailto:investors@iggroup.com)

 

Media

Sodali & Co

020 7100 6451

iggroup@client.sodali.com

 

Disclaimer - forward-looking statements

This statement, prepared by IG may contain forward looking about IG and its
subsidiaries. Such forward-looking statements can be identified by the use of
forward-looking terminology, including the terms "believes", "projects",
"estimates", "plans", "anticipates", "targets", "aims", "continues",
"expects", "intends", "hopes", "may", "will", "would", "could" or "should" or,
in each case, their negative or other various or comparable terminology.

Forward-looking statements involve known and unknown risks, uncertainties,
assumptions and other factors which are beyond IG's control and are based on
the Group's beliefs and expectations about future events as of the date the
statements are made. If the assumptions on which the Group bases its
forward-looking statements change, actual results may differ from those
expressed in such statements. There are a number of factors that could cause
actual results and developments to differ materially from those expressed or
implied by these forward-looking statements, including those set out under
"Principal Risks" in the Group Annual Report for the financial year ended 31
May 2025. The Annual Report can be found on IG's website (www.iggroup.com).

Forward-looking statements speak only as of the date they are made. Except as
required by applicable law and regulation, IG undertakes no obligation to
update these forward-looking statements.

No profit forecasts or estimates

No statement in this announcement is intended as a profit forecast or estimate
for any period and should not be construed as such.

About IG

IG Group (LSEG:IGG)
(https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.iggroup.com%2F&data=05%7C01%7CSimon.Wright%40ig.com%7Cfa58780cb4c445598c5a08da3f12df38%7C4b4cca9cedaf42f38e219070c5d9d76b%7C0%7C0%7C637891647530086156%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=ZopP0pt%2Bpil6u7sT7JRD8OjvetOm4sSxJJ%2FDPRvXU2A%3D&reserved=0)
provides online trading platforms and educational resources to empower
ambitious customers around the globe. Headquartered in the UK, IG Group is a
FTSE 250 company that offers customers access to c.19,000 financial markets
worldwide.

 

APPENDIX I

ADDITIONAL UNAUDITED FINANCIAL INFORMATION ON INDEPENDENT RESERVE(1)

 

 12-months to 30 June (A$, unless stated)    FY23   FY24   FY25

 Revenue (m)                                 12.2   18.8   35.3
 EBITDA (m)                                  (1.6)  2.3    9.9
 EBITDA margin                               NM     12.2%  28.2%

 Assets under custody (bn)                   0.6    1.0    1.7
 Funded accounts ('000)(2)                   81.0   96.1   129.4
 Average monthly active customers ('000)(3)  4.5    7.3    11.6

Notes:

1. Unaudited financial information based on Independent Reserve accounting
policies
2. Accounts holding a cash or crypto balance at the end of the relevant period
3. Active customers classified as customers trading at least once in a month,
with average monthly active customers representing the average of monthly
counts in the relevant fiscal year

 

 

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