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IG Group to buy Underdog for $1.3 billion, boosting US prediction‑market push
IG Group Holdings plc announced a deal to acquire US prediction‑market operator Underdog for up to $1.3 billion. The transaction includes an upfront payment of $1.1 billion, a $200 million earn‑out, and potential additional payouts of up to $850 million to eligible Underdog employees if EBITDA targets are met in 2028.
The acquisition is intended to cement IG’s position in the fast‑growing US market for sports‑linked prediction contracts and daily‑fantasy‑sports platforms. Underdog, which launched its US prediction‑market venue in September 2025, is now the third‑largest regulated US prediction‑market venue by volume.
Underdog’s in‑house UDX exchange recorded $1.2 million in notional trading volume on July 27, roughly 5 % of the company’s estimated average daily flow, indicating a strong early start for the new platform.
IG Group, which serves more than 1.3 million customers in 19 countries, also received an “Outperform” rating from Royal Bank of Canada, with a price target of GBX 1,850, reflecting analyst confidence in the firm’s growth strategy.
Entities
Breon Corcoran · IG Group · IG Group Holdings plc · Jeremy Levine · Royal Bank of Canada · UDX exchange · Underdog · Underdog's UDX
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] IG Group CEO Breon Corcoran called the acquisition a “defining step”. thesheffieldpress.com
- [○ 1 SOURCE] Underdog’s UDX exchange recorded $1.2 million in notional trading volume on 27 July, about 5 % of its average daily flow. news.bitcoin.com
- [○ 1 SOURCE] Underdog is the third‑largest US prediction‑market venue by regulated volume. thesheffieldpress.com
- [● 2 SOURCES] IG Group serves over 1.3 million customers worldwide across 19 countries. www.marketbeat.com · thesheffieldpress.com
- [○ 1 SOURCE] IG Group expects to more than double its US revenue and increase US monthly active customers tenfold. www.financemagnates.com
- [● 2 SOURCES] IG Group agreed to acquire Underdog for up to $1.3 billion. thesheffieldpress.com · www.financemagnates.com
- [○ 1 SOURCE] The deal includes a $1.1 billion upfront payment, a $200 million earn‑out and up to $850 million contingent on EBITDA targets. www.financemagnates.com
- [○ 1 SOURCE] Royal Bank of Canada reaffirmed an “outperform” rating on IG Group shares with a GBX 1,850 price target. www.marketbeat.com
- [○ 1 SOURCE] Underdog’s UDX exchange recorded $1.2 million in notional trading volume on July 27, about 5 % of its estimated daily flow. news.bitcoin.com
- [○ 1 SOURCE] The deal includes a $1.1 billion upfront payment and a $200 million earn‑out. www.financemagnates.com
- [○ 1 SOURCE] IG Group received an “Outperform” rating from Royal Bank of Canada with a price target of GBX 1,850. www.marketbeat.com
- [○ 1 SOURCE] IG Group’s CEO Breon Corcoran described the acquisition as a defining step for US prediction markets. thesheffieldpress.com