A prominent Latin American online gaming provider, Codere Online, will become a publicly listed company through a merger with DD3 Acquisition Corp. II, a special purpose acquisition company (SPAC).
This action will establish Codere Online as the first publicly traded online gaming firm in Latin America. The agreement values the merged entity at $350 million, over twice Codere Online’s forecasted revenue of $150 million for 2022.
Codere Online maintains a significant presence in markets such as Spain, Italy, Mexico, Colombia, and Panama. The company is also prepared to commence operations in Buenos Aires, Argentina, by the close of 2021, further strengthening its regional standing.
Moshe Edree will remain at the helm as CEO. He conveyed his enthusiasm for the merger, remarking, “This agreement unites Codere’s robust brand recognition and expertise in expanding online gaming enterprises with a top-tier sponsor in DD3.” He added that the merger and capital infusion would empower Codere Online to leverage its primary markets and venture into other high-growth markets within Latin America.
The merger will also result in the inclusion of DD3 Capital Partners’ founding partners on Codere Online’s board of directors, contributing a wealth of knowledge in developing thriving businesses.
A number of prominent investment groups, such as Barlon Capital, MG Capital, LarrainVial, and DD3 Capital Partners, have committed to putting over $67 million into Codere Online upon the completion of its union with DD3. This action has garnered full support from the heads of both Codere Online and DD3, in addition to the board of directors at Codere S.A. The amalgamation is projected to conclude in the final quarter of 2021.
Martin Werner, a founding member of DD3 Capital Partners, conveyed his eagerness, remarking that they are thrilled to collaborate with Codere Online’s management to take the enterprise public. He underscored Codere’s assets, including its varied offerings, extensive target demographic, and minimal rivalry from other international gaming entities, as crucial benefits for growth in Latin America.
Vicente Di Loreto, Chief Executive Officer of Codere Group, shared this viewpoint, stressing that the agreement will furnish the online team with the essential means to propel Codere Online to greater success. He perceives this as confirmation of the worth generated over the past three years and the solid base established by the team.
This development coincides with a period where Codere’s conventional brick-and-mortar business has encountered difficulties, experiencing a substantial decline in earnings during the initial quarter and a recent transition into liquidation.
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