Flutter acquires NSX to boost betting presence in Brazil

Flutter Entertainment has finalized the purchase of a 56% stake in Brazil’s NSX Group for around $350 million in cash.

NSX is behind the rapidly growing Betnacional brand and ranks among the leading companies in Brazil’s booming online betting industry.

According to Flutter, the acquisition enhances its foothold in Brazil’s newly regulated market and aligns with its broader goal of establishing a leading presence in major global markets.

Peter Jackson, Flutter CEO, mentioned:

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 capitalise on the exciting runway of future growth in Brazil.

With over 200 million people and a strong passion for sports, especially football, Brazil is seen as a prime market for online betting expansion.

To solidify its foothold, Flutter plans to merge NSX with its existing Betfair Brazil business, which has now been integrated into the new venture as part of the acquisition.

Founded in 2021, NSX quickly climbed the ranks to become Brazil’s fourth-largest betting operator by 2023.

Flutter believes this move secures it a leading position in the Brazilian market while adding to its portfolio of standout “local hero” brands. Beyond increasing its presence, the company anticipates notable revenue synergies from incorporating NSX into its broader group.

These gains are expected through the use of Flutter’s proprietary tools, including advanced pricing models, risk management systems, and iGaming content, to elevate the overall sportsbook and gaming experience.

Flutter anticipates that acquiring NSX will contribute around $220 million in revenue in 2025, though it expects an adjusted EBITDA loss of $70 million—consistent with forecasts for a newly regulated, rapidly expanding market. These financial results will be reported under Flutter’s International segment.

As part of the deal, Flutter has obtained options to raise its ownership stake through put and call arrangements at the five- and ten-year milestones following the acquisition. While the deal is likely to cause a temporary rise in leverage, the company maintained its medium-term net leverage target of 2.0x to 2.5x.