IG Group has agreed to in finding US prediction markets and day-to-day fantasy sports actions operator Underdog for as much as approximately $1.3 billion, making the sector a central reveal of the dealer’s subsequent section of growth.
The acquisition is a key final consequence of the strategic overview IG launched in March. Alongside side its proposed redomicile and refreshed organisational model, the transaction critically concludes that direction of. Completion is anticipated in late 2026 or early 2027, area to regulatory approvals.
Underdog Provides Substitute and Clearing Infrastructure
The deal contains upfront consideration in step with an project fee of approximately $1.1 billion and an earnout of as much as approximately $200 million.
IG expects an upfront equity fee of about $963 million, settled with approximately 24.1 million unique shares and a cash fee of about $380 million.
A bridge facility of as much as $950 million will fund the cash fee, earnout and refinancing of approximately $160 million of Underdog debt.
Individually, eligible Underdog employees could perchance perchance receive as much as $850 million underneath a administration incentive opinion. IG talked about it falls out of doors the admire payable to promoting shareholders and is anticipated to be funded from Underdog’s earnings. The utmost payout requires EBITDA of now not now not as much as $400 million in 2028 and $700 million in 2029.
The acquisition would give IG a vertically built-in US licence stack comprising a futures price carrier provider, designated contract market and derivatives clearing organisation, spanning brokerage, exchange and clearing.
Underdog launched prediction markets in September 2025 and its proprietary exchange in July 2026. IG talked about the infrastructure could perchance perchance also make stronger contracts referencing crypto, financial and macroeconomic events, as neatly as cultural and political outcomes.
H1 Reveals Sooner Product Rollout
IG had already accelerated product growth sooner than announcing the deal. It launched nearly as many merchandise and aspects at some stage in the six months to June as at some stage in the total of 2025. Tastytrade added prediction markets overlaying commodities, crypto, and economic and financial events.
Whole revenue increased 18% to £642.8 million. Vigorous customers rose 66% to 843,600 and first trades increased 107% to 121,400, including acquisition effects. On an natural persevering with-operations foundation, packed with life customers increased 13% and first trades rose 74%.
IG talked about the acquisition would more than double its US revenue and amplify US monthly packed with life customers more than tenfold. In retaining with the corporations’ 2025 results, the US would personal represented approximately 40% of pro forma neighborhood revenue, compared with 22% for IG alone.
The firm expects the transaction to be broadly just to adjusted earnings per fragment in the principle 365 days and double-digit share accretive by 365 days three.
Underdog would remain commercially standalone underneath its unique mark, administration and platform. IG’s London listing would remain unchanged underneath the proposed Jersey guardian.
IG Group has agreed to in finding US prediction markets and day-to-day fantasy sports actions operator Underdog for as much as approximately $1.3 billion, making the sector a central reveal of the dealer’s subsequent section of growth.
The acquisition is a key final consequence of the strategic overview IG launched in March. Alongside side its proposed redomicile and refreshed organisational model, the transaction critically concludes that direction of. Completion is anticipated in late 2026 or early 2027, area to regulatory approvals.
Underdog Provides Substitute and Clearing Infrastructure
The deal contains upfront consideration in step with an project fee of approximately $1.1 billion and an earnout of as much as approximately $200 million.
IG expects an upfront equity fee of about $963 million, settled with approximately 24.1 million unique shares and a cash fee of about $380 million.
A bridge facility of as much as $950 million will fund the cash fee, earnout and refinancing of approximately $160 million of Underdog debt.
Individually, eligible Underdog employees could perchance perchance receive as much as $850 million underneath a administration incentive opinion. IG talked about it falls out of doors the admire payable to promoting shareholders and is anticipated to be funded from Underdog’s earnings. The utmost payout requires EBITDA of now not now not as much as $400 million in 2028 and $700 million in 2029.
The acquisition would give IG a vertically built-in US licence stack comprising a futures price carrier provider, designated contract market and derivatives clearing organisation, spanning brokerage, exchange and clearing.
Underdog launched prediction markets in September 2025 and its proprietary exchange in July 2026. IG talked about the infrastructure could perchance perchance also make stronger contracts referencing crypto, financial and macroeconomic events, as neatly as cultural and political outcomes.
H1 Reveals Sooner Product Rollout
IG had already accelerated product growth sooner than announcing the deal. It launched nearly as many merchandise and aspects at some stage in the six months to June as at some stage in the total of 2025. Tastytrade added prediction markets overlaying commodities, crypto, and economic and financial events.
Whole revenue increased 18% to £642.8 million. Vigorous customers rose 66% to 843,600 and first trades increased 107% to 121,400, including acquisition effects. On an natural persevering with-operations foundation, packed with life customers increased 13% and first trades rose 74%.
IG talked about the acquisition would more than double its US revenue and amplify US monthly packed with life customers more than tenfold. In retaining with the corporations’ 2025 results, the US would personal represented approximately 40% of pro forma neighborhood revenue, compared with 22% for IG alone.
The firm expects the transaction to be broadly just to adjusted earnings per fragment in the principle 365 days and double-digit share accretive by 365 days three.
Underdog would remain commercially standalone underneath its unique mark, administration and platform. IG’s London listing would remain unchanged underneath the proposed Jersey guardian.
