UK trading platform IG Group has agreed to acquire US daily fantasy sports and prediction markets operator Underdog in a deal worth up to $1.3 billion — the company's largest bet on the American prediction markets sector.
The upfront enterprise value sits at around $1.1 billion, with a further $200 million contingent on performance targets. The initial payment comprises roughly $963 million in IG shares (about 24.1 million new shares) and $380 million in cash. IG will also retire approximately $160 million of Underdog's debt.
The acquisition gives IG Group a material foothold in US prediction markets, where users trade contracts on real-world outcomes. Chief executive Breon Corcoran said the deal makes IG a leader in American prediction markets and accelerates growth in the world's largest retail trading market.
IG is closing out a strategic review launched in March with the purchase. The company has paused its share buyback programme and plans to restart it in 2027, after completing its redomiciliation to Jersey.
IG expects the deal to be EPS-neutral in year one but accretive by double digits in year three.
Alongside the announcement, IG reported first-half results: revenue climbed 18% to £642.8 million ($865.34 million), and underlying profit rose 4% to £282 million. The company confirmed full-year performance will meet market expectations.
