IG Group Acquires Australian Crypto Exchange Independent Reserve for £86.8m

IG Group buys Independent Reserve to power its APAC crypto push

IG Group has agreed to acquire Independent Reserve, one of Australia’s largest digital asset exchanges, for an initial enterprise value of A$178.0m (£86.8m). It is a classic bolt-on deal that gives IG instant access to regulated crypto markets in Australia and Singapore, plus a seasoned team of crypto specialists. For a FTSE 250 broker best known for CFDs and spread betting, this fills a clear product gap in a priority region.

The businesses will keep Independent Reserve’s brand while IG integrates the exchange’s product into its platforms, initially in Australia and Singapore. The leadership and employees are staying on and will retain a 30% stake at completion – a useful alignment mechanism in a fast-moving market.

Deal terms at a glance

Initial enterprise value	A$178.0m (£86.8m), equal to 5.0x FY25 revenue
Stake bought at closing	70%
Initial consideration for 70%	A$109.6m (£53.4m)
Expected share of acquired surplus cash	A$8.4m (£4.1m)
Deferred payment for 70% (contingent on FY26)	A$15.0m (£7.3m), taking 70% consideration to A$124.6m (£60.8m)
Remaining 30%	IG has a call option; pricing based on FY27-FY28 performance
Cap on EV for remaining 30%	A$160.5m (£78.3m)
Maximum total EV if outperformance	Up to A$285.1m (£139.0m)
Approvals and timing	Subject to MAS and FIRB approvals; expected to complete in early 2026
Earnings impact	Expected cash EPS accretive in FY27; ROIC above WACC in FY29-FY31

Why Independent Reserve matters for IG’s crypto strategy

• Regulated footprint where it counts: Independent Reserve is permitted to operate in Australia and Singapore, two of Asia Pacific’s most credible regulatory regimes for digital assets.
• Product and audience fit: The exchange lists 34 digital assets across multiple currencies and serves both retail and institutional clients – a neat complement to IG’s multi-asset trading audience.
• Talent retained: Keeping the team and a 30% seller stake should preserve momentum and align incentives while IG plugs the product into its own platforms.
• Regional springboard: IG explicitly flags optionality to expand across Asia Pacific and the Middle East once the integration is bedded in.

Independent Reserve’s numbers show real momentum

Independent Reserve delivered A$35.3m (£17.7m) revenue in the 12 months to 30 June 2025, up 88% year on year and a 70% two-year CAGR. EBITDA was A$9.9m (£5.0m) with a 28.2% margin, a solid profitability profile for a crypto exchange of this size. Around 76% of revenue came from Australia and 24% from Singapore.

Customer activity is scaling, too. Average monthly active customers were about 11,600 in FY25, up 60% year on year and a 60% two-year CAGR. In the exchange’s own definition, an active customer is one who trades at least once in a month, averaged across the year.

Key operating metrics (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)	81.0	96.1	129.4
Avg monthly active customers (‘000)	4.5	7.3	11.6

How this complements IG’s UK and US crypto rollout

In the UK, IG launched spot crypto trading in May 2025, becoming the first UK-listed company to offer retail spot crypto. It carries 35 coins and is fully integrated across the IG platform and IG Invest app, in partnership with Uphold.

In the US, tastytrade now lists 23 coins and has enabled stablecoin account funding across multiple blockchain networks, powered by Zero Hash. Together with Independent Reserve, IG is building a three-continent crypto footprint with regulated access points and platform-level integration.

My take on valuation and returns

The initial price equates to 5.0x Independent Reserve’s FY25 revenue. That looks reasonable if current growth persists and IG can drive cross-sell through its platform. The structure also keeps risk in check: sellers retain 30% at close and a portion of consideration is contingent on performance, while IG controls the timing of buying the remainder via a call option.

The guidance is punchy but clear: cash EPS accretive in FY27 and ROIC above WACC in FY29-FY31. In plain English, IG expects the deal to lift earnings in the first full year after completion and produce returns above its cost of capital by years three to five.

Key risks and what to watch

• Regulatory approvals: Completion needs green lights from MAS in Singapore and FIRB in Australia. Timing is flagged as early 2026, but delays are always possible.
• Crypto cyclicality: Revenues and activity can swing with market conditions. Independent Reserve’s strong FY25 growth could moderate if volumes cool.
• Consideration could rise: If the business outperforms its plan in FY27-FY28, the total enterprise value could reach up to A$285.1m (£139.0m). That would likely reflect stronger earnings, but it is still a higher price tag.
• Integration execution: IG plans to retain the brand while integrating the product into its platforms. That is sensible, but still requires careful tech, risk and compliance work.
• Funding details: The RNS does not disclose how IG will finance the transaction.

What this means for IG Group shareholders

Strategically, this is a tidy move. It accelerates IG’s push into regulated APAC crypto, adds a profitable operator with growth traction, and keeps the talent in place. It also complements IG’s UK and US progress, creating a broader, multi-regional crypto footprint under one roof.

Financially, the revenue multiple feels defendable given the growth, EBITDA margin and custodial asset base. The earn-out and staged ownership help balance risk. The obvious caveat is timing – completion is not expected until early 2026, so the near-term numbers will not change. Still, if IG hits its EPS and ROIC milestones, this acquisition should enhance the Group’s growth profile without stretching the balance sheet.

Near-term catalysts

• 25 September: IG’s Q1 FY26 trading update – any colour on the regulatory process or integration planning would be helpful.
• Regulatory milestones: Updates from MAS and FIRB on approvals and any conditions.
• Crypto market backdrop: Sustained trading volumes would support Independent Reserve’s trajectory into completion.

Bottom line

I like the fit, the region, and the alignment. Independent Reserve brings regulated access to Australia and Singapore, proven growth, and a team that lives and breathes crypto. There is execution and regulatory work to do, and the consideration could step up if performance beats plan, but the pay-off is clear: broader product reach and a pathway to earnings accretion and attractive returns.