Flutter Entertainment has completed the acquisition of a majority stake in NSX Group, operator of the Betnacional brand in Brazil.
Following an initial agreement last September, Flutter has paid a cash consideration of R$1,961 million (approx. US$350 million) and contributed its existing Betfair Brazil business, in return for a 56 per cent 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 completion.
Revenue synergies are expected to be achieved by providing NSX with access to Flutter’s proprietary pricing and risk management capabilities to deliver a differentiated sportsbook product offering.
This is in addition to the sharing of Flutter’s iGaming expertise and content to enhance the operator’s iGaming offering.
Flutter expects that the acquisition will contribute $220 million in additional revenues in 2025, although the business is expected to generate an adjusted EBITDA loss of $70 million.
“I am delighted to welcome NSX – the operator of leading Brazilian sports betting and iGaming brand, Betnacional – to the Flutter portfolio,” said Flutter CEO Peter Jackson. “The transaction demonstrates Flutter’s powerful optionality as an ‘and’ business and aligns perfectly with our strategy for value creating M&A.
“The combination of NSX’s extensive local expertise, alongside our existing Brazilian business and the advantages of the Flutter Edge, creates a compelling opportunity to capitalize on the exciting runway of future growth in Brazil.”
NSX first entered the Brazilian market in 2021.
Shares in Flutter Entertainment plc (NYSE:FLUT) closed 2.57 per cent higher at $248.05 per share in New York Tuesday, and were unchanged at 18,605.00 pence in London earlier Thursday (LSE:FLTR).