The deal includes Codere Online Luxembourg, S.A, Servicios de Juego Online, S.A.U and its consolidated subsidiaries Codere Online and Codere Newco, S.A.U.
As part of the agreement, Codere Online will become a public company, making it the first publicly listed online gaming operator in Latin America.
It will continue to be led by the company’s Managing Director, Moshe Edree, while the founding partner of DD3 Capital partners will join the Codere Online Board of Directors.
Moshe Edree, Managing Director of Codere Online, said: “We are thrilled to partner with DD3. This deal brings together the renowned Codere brand and our deep expertise in growing online gaming businesses, with a world-class sponsor like DD3 that has a proven track record of building businesses through a team of seasoned investors.
“By going public and with the new capitalisation, we will be in a superb position to leverage our online business in our core countries of Spain, Italy, Mexico, Colombia and Panama, as well as the City of Buenos Aires, where we expect to start operating in late 2021, to fuel our further expansion in other high-growth Latin American markets.”
The collaboration values the combined company at an estimated worth of $350m, which is two times more than the revenue Codere Online estimated for 2022 ($150m).
Baron Funds, MG Capital, LarrainVial and DD3 Capital partners have all committed to a private investment of more than $67m, which will close once the businesses combine.
The business combination has been approved by managing bodies of Codere Online and DD3, as well as the Board of Directors of Codere S.A. The deal is expected to be completed during the fourth quarter of 2021.
Martin Werner, Founding Partner of DD3 Capital Partners, said: “We are excited to partner with Moshe and his team to bring Codere Online to the public markets.
"The omni-channel presence of Codere, paired with the expansive addressable market and limited competition from global gaming operators, gives Codere Online a unique advantage in their expansion across Latin America.”
Vicente Di Loreto, CEO of Codere Group, added: “We are proud of this deal, which will provide our online team with the financial resources needed to grow Codere Online and take it to a new, higher level.
"It is a good signal of the value we have been able to create in the last three years, and the solid team and business platform achieved through Moshe's leadership."
Previously, however, Codere's retail operations had run into some trouble, reporting a 54% drop in Q1 operating revenue, while the previous month it went into liquidation.
