IG Group Agrees to Acquire Underdog for $1.1 Billion in Strategic U.S. Expansion
IG Group has agreed to acquire U.S.-based prediction markets and daily fantasy sports operator Underdog for an upfront payment of $1.1 billion, with additional earn-out potential tied to revenue performance through 2026. The acquisition is expected to significantly expand IG’s presence in the United States by more than doubling its domestic revenue and increasing active customers tenfold. Underdog's user base includes nearly one million monthly active users, predominantly under age 30. The deal will be funded via a combination of new equity and debt financing, with IG pausing its share buyback program to maintain an investment-grade credit rating and existing dividend policy. The acquisition is expected to have neutral adjusted earnings per share (EPS) impact in the first year but could deliver double-digit accretion by 2027. Underdog has experienced rapid growth over recent years, with net revenue rising 21% year-over-year to $466 million for the period ending June 2026. The company operates a vertically integrated platform and is one of three major providers in U.S. sports prediction markets.