IG Group Holdings to acquire Underdog

(PRESS RELEASE) -- IG Group Holdings plc announces that it has agreed to acquire Underdog (Underdog Sports Holdings, Inc.), a leading U.S. daily fantasy sports and prediction markets operator, for total consideration of up to approximately $1.3 billion. This comprises upfront consideration based on an enterprise value of approximately $1.1 billion (to be settled partly by the issuance of IG ordinary shares) and an earnout of approximately $200 million payable to Underdog's shareholders.

Separately, and in addition to this consideration, eligible Underdog employees will participate in a management incentive plan with a maximum potential payout of $850 million, self-funded from Underdog's earnings and conditional on strong outperformance. The maximum total MIP would require Underdog to deliver EBITDA of at least $400 million in 2028 and $700 million in 2029.

Since launching prediction markets in September 2025, Underdog has become the third-largest US prediction markets venue by U.S. regulated notional volume flow, across both prediction markets and daily fantasy sports combination trades behind Kalshi and Robinhood1. Prediction markets are among the fastest-growing trading and entertainment markets, with volume to date dominated by sport – where Underdog's brand equity gives it an advantaged position to consider expanding into crypto, financial, macroeconomic, cultural and political outcomes, opening a materially larger addressable market.

The Acquisition is a key outcome of the Group’s strategic review announced on 19 March 2026 and marks a decisive step in IG’s long-term strategy to build a global consumer engagement platform that capitalizes on the rapid convergence of trading, investing and entertainment. Together with IG’s proposed redomicile and refreshed organizational model, announced on 8 July 2026, it substantially concludes that review. IG has today also published its H1 2026 results in a separate announcement and will set out further detail on its refreshed strategy, capital allocation framework and guidance at a Strategy Update on 22 October 2026.

The Acquisition is expected to be broadly neutral to adjusted EPS in year one, double-digit percent 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, in line with IG's capital allocation framework2