Underdog is going overseas.
The New York-based company has been sold to U.K.-headquartered online trading firm IG Group for up to $2.15 billion in total consideration, according to a Thursday press release. That total comes from $1.1 billion IG Group is paying upfront, a $200 million earnout payable to Underdog shareholders, and a maximum of $850 million that could go to “eligible Underdog employees” depending on the company’s future performance.
In order for the $850 million figure to hit, Underdog must deliver earnings of at least $400 million in 2028 and $700 million in 2029, before interest, taxes, depreciation, and amortization.
IG Group, founded in London in 1974, said earlier this month it intends to reincorporate in Jersey, a self-governing island in the English Channel. With its latest acquisition, it is betting on Underdog securing a permanent spot as one of the top prediction-market platforms in the world. Analysts at BofA Securities recently said Underdog has the third-highest U.S. market share in the industry, behind Kalshi and Polymarket.
“The acquisition of Underdog establishes IG as a leader in U.S. prediction markets, one of the most significant opportunities across trading and entertainment, and accelerates our growth in the world’s largest and fastest-growing retail trading market,” IG CEO Breon Corcoran said in the press release.
