Paddy Power owner Flutter snaps up majority stake in Brazil’s NSX
It will acquire a 56% stake in NSX Group, which runs the Betnacional brand in Brazil, for around 350 million US dollars (£266 million).
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Paddy Power owner Flutter has agreed to buy a majority stake in a Brazilian betting firm as it continues its global expansion.
Flutter told shareholders on Friday morning it will snap up a 56% stake in NSX Group, which runs the Betnacional brand in Brazil, for around 350 million US dollars (£266 million).
It follows reports last month that Flutter had entered talks with the country’s fourth biggest gambling operator.
We see this as a sensible move, further expanding and accelerating its growth profile
The move comes ahead of the launch of the regulated betting market in Brazil in January next year.
As part of the deal, Flutter’s existing Betfair Brazil business will combine with NSX to form Flutter Brazil.
Bosses added that they will be able to increase Flutter’s ownership stake in NSX through options five years and 10 years after the deal has completed.
It said the region is compelling for investment, partly due to strong demand for sports betting, with sports, and specifically football, playing a key part in the country’s culture.
Peter Jackson, chief executive of Flutter, said: “I am excited to announce the addition of NSX, operator of Betnacional, a leading Brazilian sports betting and iGaming brand, to the Flutter portfolio.
“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 capitalise on the growth opportunity in Brazil which presents an exciting runway of future growth.”
Shore Capital analyst Greg Johnson said: “We see this as a sensible move, further expanding and accelerating its growth profile.”
The deal comes after Flutter switched its primary stock market listing to New York in May, in a blow to London’s financial markets.