IG Group to Acquire Underdog For Up to $1.3bn in US Prediction Markets Push

IG Group announced Thursday that it has agreed to acquire Underdog, a US daily fantasy sports and prediction markets operator, for total consideration of up to approximately $1.3 billion. The deal is designed to establish IG as a leader in US prediction markets.

The upfront consideration is based on an enterprise value of roughly $1.1 billion, part of which will be settled through the issuance of new IG ordinary shares. Underdog's shareholders will also receive an earnout of around $200 million. Additionally, eligible Underdog employees will participate in a management incentive plan capped at $850 million, self-funded from IG's earnings and conditional on strong outperformance.

Founded in 2020, Underdog has become one of the largest daily fantasy sports operators in the US. Since launching prediction markets in September 2025, it has grown into the third-largest US prediction markets venue by regulated notional volume flow, behind Kalshi and Robinhood. Underdog reported net revenue of about $466 million in the 12 months to 30 June 2026, up 21% year over year.

IG Group Chief Executive Breon Corcoran said the acquisition establishes IG as a leader in US prediction markets, describing the sector as one of the most significant opportunities across trading and entertainment. He added that the deal accelerates IG's growth in the world's largest and fastest-growing retail trading market.

The transaction follows the strategic review IG announced in March. The company expects the deal to be broadly neutral to adjusted earnings per share in year one and double-digit accretive by year three. Completion is expected in late 2026 or early 2027, subject to US regulatory approvals.