Flutter acquires 56% stake in Brazil’s NSX Group for $350M

Flutter Entertainment announced the acquisition of an initial 56% stake in NSX Group, a Brazilian operator of the Betnacional brand for cash consideration of approximately $350M. “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,” the company said in a statement. 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 pay cash consideration of approximately $350M and 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. The company said revenue synergies will be achieved by providing NSX access to Flutter proprietary pricing and risk management capabilities “to deliver a differentiated sportsbook product offering.”