Flutter Entertainment Expands in Brazil with NSX Group Acquisition
Flutter Entertainment has reached an agreement to acquire a 56% stake in NSX Group, which runs the Brazil-targeted Betnacional brand, for $350 million.
Christ the Redeemer statue in Brazil, Flutter Entertainment acquires 56% stake in NSX Group.
LISTEN TO THIS ARTICLE:According to Flutter, the major gambling industry acquisition, which is expected to be completed by the second quarter of 2025, will result in the creation of a new division, ‘Flutter Brazil’.
The deal includes a $350 million cash payment and the integration of Flutter’s existing Betfair brand into the new Brazilian division. The terms also permit Flutter to raise its stake in NSX at the fifth and tenth anniversaries of the deal’s finalization.
NSX, known for its flagship Betnacional brand, operates additional brands, including Pagbet, MrJack.bet, and Betpix, spanning iGaming and sports betting sectors. NSX is projected to report revenues of around $256 million and an adjusted EBITDA of $34 million in 2024.
Since entering Brazil in 2021, NSX has reached a leading position in the market. According to estimates by Regulus Partners and internal data, it has 12% of the sports betting sector and 9% of the overall online market in Brazil.
Why Flutter Chose to Acquire NSX
Flutter has called the acquisition a “compelling” deal that is in line with its strategy and should increase shareholder value.
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 capitalise on the growth opportunity in Brazil which presents an exciting runway of future growth.
Jackson added that the deal will give Flutter an “enhanced competitive position” in Brazil, the fastest-growing market in the LatAm gambling industry, expected to fully launch its regulation in January 2025.
The acquisition is a continuation of Flutter’s ‘local hero’ strategy, which involves incorporating well-recognized brands to strengthen its market position. The newly formed Flutter Brazil will benefit from a robust local management team and a locally developed proprietary technology platform.
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Value Creation and Synergies
Flutter added that the acquisition will generate synergies, particularly by integrating NSX with the Flutter Edge technology stack. This integration is expected to yield revenue synergies through advanced pricing and risk management for a distinctive sportsbook offering.
Looking ahead, Flutter is optimistic about capitalizing on the expansive growth opportunities in Brazil’s newly regulated market, mirroring its strategies in other regulated markets such as the US. Despite anticipating an adjusted EBITDA loss of $90 million to $100 million in 2025 for Flutter Brazil, the company expects substantial market share growth and long-term profitability.
Further details about the acquisition will be published during Flutter’s investor day on September 25.
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