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 U.S. revenues by growing U.S. 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.”
