LONDON: Flutter Entertainment (NYSE:FLUT), the world’s leading online sports betting and iGaming operator, today announced the acquisition of an initial 56% stake in NSX Group, a leading Brazilian operator of the Betnacional brand for cash consideration of approximately $350 million.
The transaction fully aligns with Flutter’s strategy to invest in leadership positions in international markets, securing a podium position for Flutter on completion in the regulating and fast-growing Brazilian market. NSX is the number 4 operator in Brazil, with a portfolio of brands which include the flagship Betnacional brand.
On a standalone basis, NSX is expected to generate revenue of approximately $256m and Adjusted EBITDA of approximately $34m in 2024.
Under the transaction agreement, on completion, Flutter will (i) pay cash consideration of approximately $350m1 and (ii) contribute its existing Betfair Brazil business, in return for a 56% stake in the newly combined Flutter Brazil business.
In addition, a mechanism has been put in place to enable Flutter to increase its shareholding through reciprocal put/call arrangements in year five and year ten following the completion date.
Peter Jackson, CEO, commented: “I am excited to announce the addition of NSX, operator of Betnacional a leading Brazilian sports betting and iGaming brand, to the Flutter portfolio.
We believe that combining the extensive local expertise of the NSX team, our existing Betfair business and the power of the Flutter Edge, will create a compelling opportunity to capitalize on the growth opportunity in Brazil which presents an exciting runway of future growth.”