IG Group Acquires Underdog for $1.3 Billion to Expand into U.S. Prediction Markets
Britain's IG Group has agreed to acquire U.S.-based prediction markets operator Underdog for up to $1.3 billion, signaling a major expansion into the growing American retail trading market. The deal includes an upfront payment of about $963 million in cash and shares, along with a potential earnout of $200 million tied to performance metrics. IG Group's CEO emphasized that this acquisition positions the company as a leader in U.S. prediction markets, which are gaining traction but also facing regulatory scrutiny. The transaction is part of a broader strategic review initiated by IG earlier this year and includes plans for a redomicile from Jersey to the UK. The deal is expected to be neutral on adjusted earnings per share in its first year and accretive thereafter. Separately, IG reported strong financial results for the first half of 2026, with revenue rising 18% to £642.8 million and core profit up by 4%.