Flutter Entertainment PLC on Friday said it will buy a majority stake in NSX Group, a gambling firm.
Flutter, a sports betting and gaming company, said it has forked out $350 million to secure the stake, handing the Paddy Power owner a ‘podium position’ in a fast-growing market.
Flutter will acquire 56% of NSX Group, which operates the Betnacional brand in Brazil. The stake will be acquired for $350 million in cash and Flutter will also ‘contribute its existing Betfair Brazil business’ for a 56% interest in the newly combined Flutter Brazil arm.
‘In addition, a mechanism has been put in place to enable Flutter to increase its shareholding through reciprocal put/call arrangements in year five and year ten following the completion date,’ Flutter explained.
‘The strength of the combined Flutter Brazil business will position it exceptionally well to capitalize on the opportunity in this attractive market,’ it added.
Flutter Chief Executive Officer Peter Jackson 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 capitalize on the growth opportunity in Brazil which presents an exciting runway of future growth.’
Flutter shares fell 1.2% to 16,645.00 pence each on Friday morning in London.
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