Street Calls of the Week
Investing.com -- IG Group on Friday announced plans to acquire an initial 70% stake in Independent Reserve for £53 million in cash, with an option to purchase the remaining 30% based on performance in fiscal years 2027-2028.
The deal, which values Independent Reserve at 5 times its revenue for the 12-month period ending June 2025, is expected to be completed in early 2026.
Independent Reserve generated revenue of £17.7 million in the 12 months ending June 2025, representing an 88% year-over-year increase, and EBITDA of £5 million.
These figures account for approximately 2% of IG Group’s revenue and 1% of its EBITDA over the same period.
The crypto platform reported about 11,600 average monthly active customers, a 60% increase year-over-year.
This acquisition aims to accelerate IG’s entry into cryptocurrency markets in the Asia-Pacific region while complementing its existing crypto offerings in the UK and US, aligning with the company’s strategic priorities.
IG Group expects the deal to be earnings per share accretive in fiscal year 2027 and to achieve a return on invested capital exceeding the Group’s weighted average cost of capital between fiscal years 2029 and 2031.
IG Group is scheduled to report its first-quarter 2026 results on September 25.
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