IG Group to Acquire Underdog For Up to $1.3bn in US Prediction Markets Push | LeapRate
IG Group said Thursday that it has agreed to acquire Underdog, a US daily fantasy sports and prediction markets operator, for total consideration of up to about $1.3 billion, in a move it said establishes the company as a leader in US prediction markets.
The deal comprises upfront consideration based on an enterprise value of roughly $1.1 billion, settled partly through the issue of new IG ordinary shares, alongside an earnout of around $200 million payable to Underdog’s shareholders.
IG explained that eligible Underdog employees will separately participate in a management incentive plan capped at $850 million, self-funded from the company’s earnings and conditional on strong outperformance.
Founded in 2020, Underdog has become one of the largest daily fantasy sports operators in the US and, since launching prediction markets in September 2025, the third-largest US prediction markets venue by regulated notional volume flow, behind Kalshi and Robinhood. It reported net revenue of about $466 million in the 12 months to 30 June 2026, up 21% year on year.
“The acquisition of Underdog establishes IG as a leader in US prediction markets, one of the most significant opportunities across trading and entertainment, and accelerates our growth in the world’s largest and fastest-growing retail trading market,” said IG Group Chief Executive Breon Corcoran.
The transaction is the key outcome of a strategic review announced in March. IG said it 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.
