No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - IG Group said on Thursday that it has agreed to buy US daily fantasy sports and prediction markets operator Underdog for up to $1.3bn.
It said the acquisition is a key outcome of the strategic review announced in March and marks "a decisive step in IG's long-term strategy to build a global consumer engagement platform that capitalises on the rapid convergence of trading, investing and entertainment".
Since launching prediction markets in September 2025, Underdog has become the third-largest US prediction markets venue by US regulated notional volume flow, across both prediction markets and daily fantasy sports (DFS) combination trades behind Kalshi and Robinhood, IG noted.
IG chief executive Breon Corcoran said: "Technology is reshaping the large, high-engagement markets in which IG operates -and increasingly bringing them together. Underdog puts us at the front of that convergence: a product-first team, a leading daily fantasy sports franchise and a full licence 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."
The deal is expected to be broadly neutral to adjusted earnings per share in year one, double-digit per cent accretive by year three, and to deliver a return on invested capital in excess of IG's weighted average cost of capital in year three.
See latest RNS on Investegate
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.