Coder Group announced that it will pin of its Codere Online division, valued at approximately $350 million (£251.8 million/€294.2 million), to create a newly listed public company through a merger with a special purpose acquisition company (SPAC).
Codere Group said in a statement that the listing will progress through a business combination agreement between Codere Online and the SPAC, DD3 Acquisition Corp., which has already been approved by the boards of both parties.
Codere Online plans to take its business model in Spain and Mexico throughout Latin America, according to the statement. It will also analyze options to access the Hispanic online gambling niche in the U.S.
“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,” said Vicente Di Loreto, chief executive of Codere Group. “It is a good signal of the value we have been able to create in the last three years boosting this business unit.”
Moshe Edree, managing director of Codere Online, said, “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 capitalization, 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.”
