Core Viewpoint - Flutter Entertainment has acquired a 56% stake in NSX Group, a Brazilian operator, for approximately $350 million, aligning with its strategy to invest in leading positions in attractive international markets [1][2][3] Group 1: Acquisition Details - The acquisition involves a cash payment of about $350 million and the contribution of Flutter's existing Betfair Brazil business [3] - The deal is expected to generate an additional $220 million in revenue and an adjusted EBITDA loss of $70 million in 2025 [2][4] - Flutter has established mechanisms for increasing its shareholding in NSX through reciprocal put/call arrangements in the fifth and tenth years post-completion [3] Group 2: Market Position and Strategy - The Brazilian online sports betting and iGaming market is characterized by a population exceeding 200 million, with a strong cultural affinity for sports, particularly soccer [6] - NSX has rapidly grown to become the fourth-largest operator in Brazil since its market entry in 2021, capturing a 9% market share by the end of 2023 [6][12] - The acquisition is expected to enhance Flutter's competitive position in Brazil and leverage its proprietary pricing and risk management capabilities to improve NSX's sportsbook offerings [6] Group 3: Financial Outlook - Flutter anticipates an increase in leverage due to the acquisition, but expects it to decrease over time as profitable growth opportunities materialize [4] - The company remains committed to maintaining a medium-term leverage ratio of 2.0-2.5x [4]