A prominent Latin American online gaming platform, Codere Online, is entering the stock market! They’ve struck a deal to combine with DD3 Acquisition Corp. II, a blank-check company. This action will establish Codere Online as the inaugural publicly listed online gaming entity in Latin America, demonstrating their robust market presence.
The unified company, retaining the Codere Online name, will operate under the leadership of the existing CEO, Moshe Edree. Edree conveyed his enthusiasm for the amalgamation, underscoring Codere Online’s assets, such as their recognized brand and online gaming expertise. He also emphasized the remarkable prospects offered by the Latin American market, where Codere already holds a significant presence in nations like Spain, Italy, Mexico, Colombia, and Panama.
The transaction appraises the combined company at a considerable $350 million, exceeding twice Codere Online’s anticipated $150 million revenue for 2022. This merger will furnish Codere Online with the necessary funds and backing to further broaden their reach within Latin America and leverage the region’s promising growth trajectory.
Numerous financial institutions, including Barlon Fund, MG Capital, LarrainVial, and DD3 Capital Partners, have committed over $67 million to support the amalgamation of Codere Online, Codere’s internet gaming branch, with the blank-check firm DD3 Acquisition Corp. This action will make Codere Online a publicly traded company.
The consolidation has received complete endorsement from the management at both Codere Online and DD3, in addition to Codere S.A.’s board of directors. The transaction is anticipated to be concluded by the end of 2021.
Martin Werner, a founding member at DD3 Capital Partners, conveyed enthusiasm about collaborating with Moshe Edree (Chief Executive Officer of Codere Online) and his group to introduce Codere Online to the stock market. He emphasized Codere’s robust standing in the Latin American market with its integrated digital and brick-and-mortar presence and minimal rivalry from other international participants.
Vicente Di Loreto, Chief Executive Officer of Codere, stressed that this agreement will furnish the essential capital for Codere Online’s development and enlargement. He views it as confirmation of the worth generated over the preceding three years and the capability of the team and infrastructure established under Moshe Edree’s guidance.
This initiative to reinforce Codere Online arises as the company’s conventional in-person wagering business has encountered substantial difficulties. Codere’s retail sector experienced a 54% decline in earnings in the initial quarter and commenced insolvency procedures in the previous month.
