British trading platform IG Group has agreed to acquire daily fantasy sports operator Underdog for $1.1bn, with a potential earn-out of up to $200m tied to 2026 performance. The deal is expected to close in late 2026 or early 2027.
The $1.1bn valuation represents 2.4 times Underdog's annual handle through June 2026, which stood at $466m, up 21% year on year. The additional $200m will be paid to Underdog shareholders if the company hits NGR targets and posts positive EBITDA in 2026. IG Group has secured a credit facility of up to $950m from Barclays and Goldman Sachs to fund the acquisition.
Underdog launched prediction markets in September 2025 through a partnership with Crypto.com Derivatives across 16 states. The platform now operates in 30 states, has migrated to Kalshi, and ranks as the third-largest regulated prediction market in the US by volume. According to IG Group, Underdog is the second-largest DFS operator by revenue after PrizePicks, with five million depositing customers and 11 million registered accounts. Prediction markets accounted for 54% of handle in the first half of 2026, with quarterly EBITDA reaching $46m.
The deal is being led by IG Group CEO Breon Corcoran, former chief executive of Paddy Power Betfair. Corcoran in 2017, while heading PPB, acquired founder Jeremy Levine's DFS app DRAFT for $19m plus up to $29m in contingent payments. Corcoran was also an early investor in Underdog.
Once closed, the acquisition will more than double IG Group's US revenue and increase active clients tenfold. The US will represent around 40% of consolidated group revenue, with prediction markets and DFS contributing roughly 25% of total net trading revenue. Underdog will retain its brand and Levine will report directly to Corcoran. IG Group plans to expand contract offerings beyond sports into crypto, financial markets and political events.
