Flutter Entertainment has bought an initial 56 per cent stake in NSX Group, a leading 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. NSX is the number four operator in Brazil, with a portfolio of brands which include the flagship Betnacional brand. 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 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 the completion date.
Brazil is due to fully regulate its online sports betting and iGaming market in early 2025 and has a number of highly attractive characteristics including a population of over 200 million, with sports, and soccer in particular, being a key part of Brazilian culture and strong demand for sports betting and iGaming products with compound annual gross gaming revenue (GGR) growth in the unregulated market of 38 per cent since 2018, to almost $3bn in 2023 The majority of growth and market share gains have been delivered by locally focused brands
Peter Jackson, CEO, commented: “I am excited to announce the addition of NSX, operator of Betnacional a leading Brazilian sports betting and iGaming brand, to the Flutter portfolio. 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.”