IG Group is buying Underdog for a total consideration of up to $1.3 billion, the London-listed financial technology company announced Thursday afternoon.
Upfront consideration is $1.1 billion partially paid in IG Group shares along with a $200 million earnout payable to shareholders. The decision comes out of IG Group’s strategic review launched in March as the company sought to build a global trading, investing and entertainment platform.
IG intends to more than double US revenues by growing US monthly actives more than tenfold, according to the announcement. The hope is for Underdog to become a “coherent customer funnel” that can turn sports and prediction markets customers into “active trading and derivatives on financial markets.”
The deal comes with incentive for Underdog management, too. IG Group could also pay out $850 million under a management incentive plan based on hitting adjusted EBITDA of $400 million in 2028 and $700 million in 2029.
Statements on Underdog deal
Underdog is about to take an “incredible leap,” said CEO Jeremy Levine.
“We built Underdog by creating the best experience for fans, and we’ve proven we can build the best products no matter how the regulatory landscape shifts,” Levine said. “It’s why we’ve taken off in prediction markets since we launched last year. Now, with our own exchange and by joining IG, we’re going to take an incredible leap in what we can offer customers and make Underdog the place to make predictions on sports and beyond. IG’s scale, expertise, resources and reach are going to unlock our potential, expand what we’ve built, and bring our products to more audiences. I couldn’t be more excited about what we’re going to do together.”
Underdog is the third-largest prediction markets operator by US-regulated notional volume flow, according to IG’s estimates, behind just Kalshi and Robinhood. That means IG gets to enter the predictions business as a leader, CEO Breon Corcoran said.
Corcoran is the former CEO of Paddy Power Betfair, spending nearly 20 years with Paddy Power in total.
“Technology is reshaping the large, high-engagement markets in which IG operates – and increasingly bringing them together,” Corcoran said. “Underdog puts us at the front of that convergence: a product-first team, a leading daily fantasy sports franchise and a full license stack that together give us a differentiated position in US prediction markets. It expands both our addressable market and our growth trajectory. We are delighted to welcome Jeremy and the Underdog team to IG.”
Let’s look at the books
IG’s presentation on the acquisition offered the first public look at their business over the past few years.
Underdog reported $250.1 million in revenue and $59.6 million in EBITDA for the first half of 2026. That is compared to $441.2 million in revenue for all of 2025, which led to an EBITDA loss of $52.8 million.
Over the last 12 months through June 30, Underdog did $466 million in revenue, up 21% from the prior period. That came from more than 950,000 monthly active users over the same time, up 39% from the year before.
There are more than 11 million registered users with about 5 million of them depositing money into their accounts. Underdog typically pays off the cost to acquire a new customer in 12 months.
