- Flutter Entertainment finalizes $350 million acquisition of 56% stake in NSX Group.
- The acquisition is expected to add $220 million in revenue but result in a $70 million EBITDA loss in 2025.
- Flutter aims to enhance its Brazilian market position, leveraging NSX's strong local presence.
Flutter Entertainment (FLUT, Financial), a leading online sports betting and iGaming operator, has completed the acquisition of a 56% stake in NSX Group, known for its Betnacional brand in Brazil. The transaction, valued at approximately $350 million, aims to merge NSX's operations with Flutter's existing Betfair Brazil business, creating a significant presence in Brazil's rapidly growing sports betting market.
NSX, which launched operations in 2021, quickly ascended to become the fourth-largest betting operator in Brazil by 2023. The deal is projected to contribute an additional $220 million in revenue but come with an adjusted EBITDA loss of $70 million by 2025. Flutter's strategic acquisition aligns with its goal to secure leadership positions in attractive international markets, particularly capitalizing on Brazil's population exceeding 200 million and its flourishing sports culture.
The acquisition agreement includes options for Flutter to increase its shareholding through put/call arrangements in the fifth and tenth years post-deal completion. This reflects Flutter's commitment to leveraging growth opportunities and enhancing shareholder value in the dynamic Brazilian market.
