Read more about our portfolio company, Underdog.
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FOR IMMEDIATE RELEASE
Proposed acquisition of Underdog
A defining step establishing IG as a leader in US prediction marketsBreon Corcoran, IG Group CEO, said: “The acquisition of Underdog establishes IG as a leader in USprediction markets, one of the most significant opportunities across trading and entertainment, andaccelerates our growth in the world's largest and fastest-growing retail trading market.”
IG Group Holdings plc ("IG", "the Group") announces that it has agreed to acquire Underdog (Underdog SportsHoldings, Inc.) ("Underdog"), a leading US daily fantasy sports and prediction markets operator (the"Acquisition"), for total consideration of up to approximately $1.3 billion. This comprises upfront considerationbased on an enterprise value of approximately $1.1 billion (to be settled partly by the issuance of IG ordinaryshares) and an earnout of approximately $200 million payable to Underdog's shareholders (the "Earnout").Separately, and in addition to this consideration, eligible Underdog employees will participate in a managementincentive plan (MIP) with a maximum potential payout of $850 million, self-funded from Underdog's earningsand conditional on strong outperformance. The maximum total MIP would require Underdog to deliver EBITDAof at least $400 million in 2028 and $700 million in 2029.
Read more about the acquisition here.
