Flutter Entertainment has finalized its acquisition of NSX Group by obtaining a majority stake of 56% for a cash compensation of around $350 million.
This development falls in line with Betfair Brazil, Flutter’s sports betting brand in Brazil, and as such, it will combine the operations of the NSX and the sportsbook to create a new iGaming entity which will operate under the umbrella of Flutter Brazil.
Moreover, the acquisition will allow Flutter to further bolster its presence in Latin America and cement its title as the leading market, a neccessary move that comes after a concerning 44% Q1 revenue drop year-on-year in Brazil in 2025.
To curb this downward trajectory, Flutter said that it expects to produce $220 million in additional revenue in 2025. Despite this, the company said that it expects a loss of $70 million in adjusted EBITDA as a result of the integration phase.
Consequently, by acquiring a majority stake in NSX Group, the owner of Brazilian sports betting platform Betnacional, Flutter seeks to leverage its risk management, iGaming content, and proprietary pricing for the purpose of expanding market share in the fast-growing market of Brazil.
As per the details of the deal, Flutter decided to contribute its Betfair Brazil operations to NSG Group in exchange for a majority stake of 56%. Additionally, there is a clause that allows Flutter to increase its ownership during the 5th and 10th years of the deal via call options and reciprocal put.
In related news, this acquisition is just one of the several similar deals conducted by Flutter in recent times. One example of this is the acquisition of the Italian brand Snai, a move that reflects the global expansion of Flutter in major regulated markets after a group revenue growth of 8% to $3.7 billion.
In an official statement, Flutter said that the company is dedicated to nurturing a medium-term leverage ratio of 2.0-2.5x, regardless of the momentary debt, which is a result of the acquisition.
Peter Jackson, CEO of Flutter, commented:
I am delighted to welcome NSX – the operator of leading Brazilian sports betting and iGaming brand, Betnacional – to the Flutter portfolio. 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.
