July 30 (Reuters) - Britain's IG Group said on Thursday it has agreed to acquire U.S. daily fantasy sports and prediction markets operator Underdog for up to $1.3 billion, deepening its push into the fast-growing U.S. retail trading market.
The deal includes an upfront consideration based on an enterprise value of about $1.1 billion and an earnout of about $200 million for Underdog shareholders, IG said.
"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.
Prediction markets, which let users trade contracts tied to real-world outcomes, have grown quickly in the United States, though the sector has also drawn scrutiny from lawmakers and regulators.
IG said the acquisition, together with a proposed redomicile, marks the culmination of a strategic review the company kicked off in March.
#growing #july
The deal includes an upfront consideration based on an enterprise value of about $1.1 billion and an earnout of about $200 million for Underdog shareholders, IG said.
"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.
Prediction markets, which let users trade contracts tied to real-world outcomes, have grown quickly in the United States, though the sector has also drawn scrutiny from lawmakers and regulators.
IG said the acquisition, together with a proposed redomicile, marks the culmination of a strategic review the company kicked off in March.
#growing #july
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