IG Group, a FTSE 100-listed financial technology company, has proposed the acquisition of Underdog Sports for approximately $1.3bn. The transaction targets the US-based operator specializing in daily fantasy sports and prediction markets.
Strategic Market Entry
The proposed deal represents a significant entry for IG Group into the United States prediction market sector. The acquisition is designed to facilitate further product expansion and diversify the company's existing portfolio.
The financial structure of the agreement includes an upfront consideration for the purchase of the US operator. This move aligns with the broader strategy to integrate daily fantasy sports capabilities into the fintech provider's ecosystem.
Underdog Sports currently operates as a distinct entity within the US gaming landscape. The integration of its assets will mark a new phase for IG Group's international operations.