Flutter Entertainment has officially completed the acquisition of a 56% stake in the Brazilian sports betting brand Betnacional operator NSX Group, with a cash consideration of approximately $350 million.
This move merges NSX with Flutter's Betfair Brazil operations, forming a new entity under Flutter Brazil.
The transaction is seen as a strategic move by Flutter to strengthen its position in Latin America's largest market, following a 44% year-on-year decline in revenue in Brazil in the first quarter of 2025.
The merged business aims to leverage Flutter's proprietary pricing, risk management, and iGaming content to expand market share in the newly regulated and rapidly growing industry.
Flutter expects this acquisition to generate approximately $220 million in additional revenue by 2025, but anticipates an adjusted EBITDA loss of $70 million during the integration phase.
Under the terms of the transaction, Flutter transfers its operations in Betfair Brazil to the new company in exchange for a 56% stake. The parties have also reached a mechanism that allows Flutter to increase its ownership through reciprocal put and call options in the fifth and tenth years.
This acquisition follows regional acquisitions such as Italy's Snai, marking another move by the company after net revenue increased to $335 million and group revenue grew 8% to $3.7 billion in the first quarter of 2025, continuing its expansion into major international markets.
Flutter states that despite the temporary increase in debt due to the acquisition, it remains committed to maintaining a medium-term leverage ratio of 2.0-2.5 times.
