Flutter Entertainment to Acquire Majority Stake in Brazilian Operator Betnacional
Flutter Entertainment has reached an agreement to acquire an initial 56% stake in Grupo NSX, the operator of the Betnacional brand in Brazil, for $350 million.
Flutter detailed that the acquisition will allow it to establish a new entity, “Flutter Brazil.” The group anticipates completing the purchase of the controlling interest in NSX, Betnacional’s parent company, by the second quarter of 2025.
Flutter will pay $350 million in cash and contribute its existing Betfair brand to the new Brazilian operation. The agreement also includes a clause allowing Flutter to increase its stake in the fifth and tenth years following the completion date.
NSX’s primary brand is Betnacional, but it also operates Pagbet, MrJack.bet, and Betpix in sports betting. NSX is projected to generate approximately $256 million in revenue and $34 million in adjusted EBITDA in 2024.
The group has been operating in Brazil since 2021 and has grown to become a leading operator in the country. According to estimates, NSX holds 12% of the Brazilian sports betting market and 9% of the total online market.
Why is Flutter Acquiring NSX?
Flutter describes the acquisition as an “attractive” deal for the group, aligning with its strategy and expected to create value for shareholders.
“We believe that combining the extensive local expertise of the NSX team, our existing Betfair business, and the power of Flutter Edge will create an attractive opportunity to capitalize on the growth opportunity in Brazil, which offers an exciting path of future growth,” stated Peter Jackson, CEO of Flutter.
Flutter stated that the agreement offers a “better competitive position” in a “newly regulated and rapidly growing market.” Brazil is expected to fully regulate its online sports betting and iGaming market in January 2025.
“The strength of the combined Flutter Brazil business will leave it exceptionally well-positioned to capitalize on the opportunity in this attractive market,” Flutter stated.
Flutter Continues “Local Hero” Approach
The acquisition fits into Flutter’s “local hero” localization strategy, adding recognized brands to its portfolio. This, according to the company, will lead to a podium position in the Brazilian market.
Flutter said its new Brazilian business will benefit from a strong local management team, enabling decision-making close to the customer. The company also mentioned a unique technology platform developed locally in Brazil.
Compelling Opportunity to Deliver Meaningful Value Creation
Flutter stated that the acquisition offers an opportunity to generate synergies through access to Flutter Edge technology.
In this regard, the company states that revenue synergies will be realized by providing NSX with access to unique risk management and pricing resources to create a differentiated sports betting offering.
“Flutter Brazil will be exceptionally well-positioned to take full advantage of the significant growth opportunity in the newly regulated Brazilian market,” Flutter stated.
“In line with our successful strategy in other newly regulated markets, such as the US, we expect to drive market share growth and embed future profitability through disciplined customer investment.”
“This is expected to result in an adjusted EBITDA loss for Flutter Brazil of approximately $90 million to $100 million in 2025.”
Flutter will provide a further update on the acquisition at its investor day on September 25.
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