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)
Copyright (c) 2024 Dow Jones & Company, Inc.-
What’s Happening in the Markets This Week
-
Worst-Performing Stock ETFs of the Quarter
-
Q3 in Review and Q4 2024 Market Outlook
-
Top-Performing Stock ETFs of the Quarter
-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue
-
Industrials: Many Stocks Overvalued After Q3 Outperformance
-
Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities
-
What the Election Could Mean for Big Tech Stocks
-
3 Lessons From Recent Stock Market Drama
-
Consumer Cyclicals: Even Amid Moderating Consumer Spending, We See Discounts
-
Healthcare: Valuations Look Fair Overall, With Select Industries Still Undervalued
-
Utilities: Falling Interest Rates, Growth Outlook Boosting Stocks