DUBLIN (dpa-AFX) - Flutter Entertainment (FLUT), a global leader in online sports betting and iGaming, has acquired a 56 percent stake in NSX Group, the Brazilian operator of Betnacional, for approximately $350 million in cash.
The move is aimed at strengthening Flutter's presence in Brazil, a newly regulated and rapidly expanding market with a strong sports culture and over 200 million people.
The acquisition enhances Flutter's local brand portfolio by integrating Betnacional, one of Brazil's fastest-growing operators, with its existing Betfair business. NSX entered the Brazilian market in 2021 and quickly rose to become the fourth-largest operator by 2023.
Flutter plans to create value through revenue synergies by providing NSX access to its proprietary pricing, risk management, and iGaming expertise. The deal is projected to generate $220 million in additional revenue but result in a $70 million adjusted EBITDA loss in 2025, reported under Flutter's International segment.
CEO Peter Jackson highlighted the acquisition as a strategic move aligned with Flutter's M&A approach, combining NSX's local insight with Flutter's global scale. Under the agreement, Flutter has contributed its Betfair Brazil assets to the newly combined Flutter Brazil entity and holds mechanisms to increase its stake over time.
While the transaction will initially increase leverage, Flutter expects it to decline due to strong future growth prospects, maintaining a medium-term leverage target of 2.0-2.5x.
Monday, FLUT closed at $248.05, up 2.57%, and is currently trading at $248.30, a further increase of 0.10% on the NYSE.
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