Flutter Entertainment is forecasting NSX Group to contribute more than $200m in additional revenues for its International segment following the completion of the acquisition of the Brazilian operator.
NSX, which operates the Betnacional brand in Brazil, is now in Flutter’s possession following the acquisition’s completion for a cash consideration of approximately $350m.
Contributing its existing Betfair Brazil business as part of the deal, Flutter now has a 56% stake in the newly combined Flutter Brazil business. Flutter can also increase its shareholding through reciprocal put/call arrangements in year five and year ten following completion.
As such, the operator is predicting that for its International segment, NSX will contribute $220m in additional revenues and an adjusted EBITDA loss of $70m in 2025, driving “market share growth and embed future profitability through disciplined customer investment”.
“I am delighted to welcome NSX – the operator of leading Brazilian sports betting and iGaming brand, Betnacional – to the Flutter portfolio,” commented Peter Jackson, CEO of Flutter Entertainment.
“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.”
Appetite for market leadership positions
Similar to the acquisition of Snaitech in the Italian iGaming market completed last month, Flutter noted that the acquisition of NSX is in line with its strategy of investing “in leadership positions in attractive international markets”.
Flutter stated that the acquisition will create shareholder value through a competitive position in the Brazilian market, enhance its local hero brand portfolio alongside its existing Betfair business to create a podium position in Brazil, as well as a synergy opportunity through Flutter Edge access to deliver “meaningful value creation”.
The operator added that revenue synergies are expected to be achieved, as NSX will have access to Flutter’s proprietary pricing and risk management capabilities, enhancing its sportsbook and iGaming offerings in the Brazilian market.
Flutter noted that with the transaction, it expects leverage to increase, but then reduce, given the “highly visible profitable growth opportunities that exist across the Group”. It remains committed to its medium-term leverage ratio of 2.0-2.5x.
Positioned to win
Earlier this month, when announcing its Q1 financial results, Flutter took into account the Snaitech and NSX acquisitions being completed for its 2025 guidance, increasing revenue and adjusted EBITDA by $1.07bn and $120m, respectively.
Group revenue is expected to be $17.08bn at the midpoint, a 22% year-over-year increase, while adjusted EBITDA is expected to be $3.18bn at the midpoint, a 35% YoY increase.
Before including the Snai and NSX acquisitions, revenue growth would be 14% YoY, while adjusted EBITDA growth would be 30% YoY.
Jackson noted at the time: “We are delivering against our strategic priorities, with clear optionality as an ‘and’ business that can create significant value through a combination of organic growth, accretive M&A, and returns to shareholders. The global regulated market opportunity is significant, and Flutter remains uniquely positioned to win.”
