IG Group Acquires Underdog Fantasy in $1.3bn Deal to Boost US Prediction Market Presence
2026-07-30
Source: Global Gaming Insider
IG Group acquires Underdog Fantasy for $1.3bn, including $1.1bn upfront and $200m earnout, to accelerate its entry into US prediction markets. Underdog recently launched its own regulated exchange, and IG expects the deal to be accretive by year three.
UK trading firm IG Group has finalised a deal to buy Underdog Fantasy for roughly $1.3 billion, marking a major push into the US prediction markets arena. The transaction includes an immediate upfront payment of approximately $1.1 billion in enterprise value alongside an earnout worth nearly $200 million for Underdog’s shareholders.
IG Group CEO Breon Corcoran said the purchase positions the company as a frontrunner in a rapidly expanding sector and accelerates its growth within the world’s largest retail trading market. He confirmed that the acquisition completes a strategic review begun in March 2026. IG Group’s share price closed at $17.06 on July 30, up 1% on the day.
The upfront consideration of $1.1 billion will be funded through the issuance of approximately 24.1 million new IG Group shares plus $380 million in cash. Upon closing, IG will also repay around $160 million of Underdog’s outstanding debt. The firm expects the transaction to have a broadly neutral impact on adjusted earnings per share in the first year and to be double-digit percentage accretive by the third year.
Underdog recently launched its own federally regulated prediction market exchange on July 20, moving away from relying solely on third-party venues such as Crypto.com and Kalshi. The shift allows the operator to control both the trading venue and the clearing organisation directly. Underdog CEO Jeremy Levine noted that the company has consistently proven its ability to build compelling products regardless of changing regulations and that joining IG will allow it to take a significant leap forward in what it can offer customers.
Levine added that IG’s scale, expertise and resources will help expand Underdog’s products to a broader audience, particularly in the prediction markets space. The deal is expected to close subject to regulatory approvals and customary conditions.