Flutter Entertainment to Buy 56% of Brazil's NSX Group for $350 Million

By Ian Walker

Flutter Entertainment is creating a new Brazilian business through the acquisition of a 56% stake in Brazil's NSX Group for $350 million and a 56% share of Betfair Brazil.

The parent company of FanDuel, Betfair and other gaming and gambling brands said Friday that the deal is part of its strategy to invest in leadership positions in international markets. It expects the deal to close in the second quarter of next year, conditional upon the usual regulatory clearances.

Flutter said it would be able to increase its shareholding in the new business through a put and call arrangement in year five and ten after completion of the initial deal.

"We believe that combining the extensive local expertise of the NSX team, our existing Betfair business and the power of the Flutter Edge, will create a compelling opportunity to capitalize on the growth opportunity in Brazil which presents an exciting runway of future growth," Chief Executive Peter Jackson said.

NSX, which has a portfolio of brands including Betnacional, is expected to generate $256 million of revenue and adjusted earnings before interest, taxes, depreciation and amortization of approximately $34 million in 2024, Flutter said.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

September 13, 2024 02:40 ET (06:40 GMT)

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