IG Group acquires Underdog for $1.3bn to ‘accelerate’ US prediction market entry

UK trading provider IG Group has agreed to acquire Underdog Fantasy in a transaction valued at approximately $1.3bn, helping the organization “accelerate” its entry into the US prediction markets scene. 

"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," IG Group CEO Breon Corcoran said.

Corcoran went on to confirm the acquisition marks the completion of a strategic review IG Group originally conducted in March 2026, while the trading provider’s share price closed at $17.06 on July 30, up 1%. 

The deal to acquire Underdog includes an upfront consideration of approximately $1.1bn – based on enterprise value – and an earnout of nearly $200m for the operator’s shareholders. 

The $1.1bn upfront consideration will be paid using approximately 24.1 million new shares of IG Group stock and $380m in cash, while the organization will repay close to $160m of Underdog’s outstanding debt upon completion. 

IG Group could also pay out an additional $850m under a management incentive plan which is based on achieving adjusted EBITDA of $400m in 2028 and $700m in 2029. 

IG Group currently offers trading on contracts related to difference, stocks and cryptocurrencies, having also stated that the transaction will have a “broadly neutral” effect on adjusted earnings per share in year one and double-digit percentage accretive by year three.

Underdog CEO Jeremy Levine also spoke on the operator’s sale, having said, “We built Underdog by creating the best experience for fans, and we’ve proven we can build the best products no matter how the regulatory landscape shifts. It’s why we’ve taken off in prediction markets since we launched last year.

“Now, with our own exchange and by joining IG, we’re going to take an incredible leap in what we can offer customers and make Underdog the place to make predictions on sports and beyond. IG’s scale, expertise, resources and reach are going to unlock our potential, expand what we’ve built and bring our products to more audiences. I couldn’t be more excited about what we’re going to do together."

Underdog launched prediction markets through its own federally regulated exchange on July 20, completing a shift away from relying exclusively on third-party venues for the contracts offered through its application.

The operator previously provided access to event contracts as an intermediary for exchanges such as Crypto.com and Kalshi, but will now be able to manage the trading venue and clearing organization supporting its product.