Daily fantasy sports operator Underdog has announced the launch of its new in-house prediction market platform following its acquisition of CFTC-regulated Aristotle Exchange...
Financial technology and crypto trading firm IG Group has announced that it has made a $1.3 billion bid to acquire daily fantasy sports and prediction markets operator Underdog.
The deal was first announced on July 30, 2026, just 2 weeks after Underdog revealed its in-house sports event contracts exchange. The acquisition marks one of the biggest agreements in the prediction market industry.
Takeover talks were led by Breon Corcoran, CEO of IG Group, and former CEO of Flutter and Paddy Power, who shared that the company plans to make Underdog a leader in U.S. prediction markets and boost its growth in the biggest retail trading market.
Corcoran commented:
“The acquisition of Underdog establishes IG as a leader in US 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.”
Underdog CEO, Jeremy Levine, added:
“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. 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.”
Under the agreement, Underdog received a valuation of $1.1 billion, with an additional $200 million earnout for the operator’s shareholders. The upfront $963 million equity value is expected to be paid through stock and cash, as IG Group plans to issue 24.1 million new ordinary shares. The company will also settle a $380 million cash payment and repay $160 million from the operator’s existing debt.
