Codere Online finalises merger with DD3 whilst making new board appointment

Codere Online has completed its merger with DD3 Acquisition Corp, following the approval of the latter’s stakeholders in 18 November, whilst also announcing the appointment of Patrick Ramsey to its board.

The Latin America-focused online sports betting and casino gaming operator predicts that the finalised transaction will result in gross proceeds of approximately $116 million, or approximately $103 million net of transaction fees and expenses.

Codere has further detailed that the cash generated from the merger will be used to fund its growth strategy across Latin America, as well as support technological investments and developments to its online platform.

Vicente Di Loreto, CEO of Codere Group, said: “The closing of this transaction, which follows completion of the recent financial restructuring of Codere Group, will provide Codere Online with the structure and resources needed to be successful in the high growth and rapidly changing online gaming sector.”

The ordinary shares and warrants of Codere Online Luxembourg SA are due to begin trading on the Nasdaq Capital Market today, under the symbols CORO and COROW, marking the first time a Latin America-facing operator has publicly listed in the US.

Codere received financial and capital market advice from Stifel and EarlyBirdCapital Inc – the latter of which also provided support to DD3 – and Deloitte acting as an accounting advisory to Codere and Stibbe advised both firms in Luxembourg Law.

Lastly, DD3 was given Spanish legal advice by Pérez-Llorca Abogados, S.L.P, whilst EY served as Codere Online’s auditor and Davis Polk & Wardwell LLP and Greenberg Trauring provided guidance on US law to Codere and DD3 respectively.

The planned merger – initially valued at $350 million – was announced earlier this year following a period of strong revenue trends for Codere Online, which saw the company’s total net gaming revenue for the six months ending 30 June, 2021.

In an update in early November, Codere detailed that its combination with SPAC DD3 was on track for completion towards the end of the month, having identified a commercial resurgence across Latin American and Spanish markets, although acknowledging some hurdles in Italy and Uruguay.

Moshe Edree, Managing Director of Codere Online, remarked: “We are very excited to have completed this transaction after months of hard work and look forward to deploying the funds obtained to deliver on our mission to become one of the leading online gaming and sports betting operators in Latin America.”

Additionally, Codere has also made changes to its board of directors, appointing Patrick Ramsay as a Non-Executive Independent Director, Chairman of the Board of Directors and a Member of the Audit Committee.

Ramsay, who holds a BA in Economics from Harvard University and an MBA from the Kellogg School of Management at Northwestern University, was nominated jointly by Codere Online and DD3, in accordance with the Nomination Agreement between the two.

“Codere Online operates in the fast-growing online segment of the gaming sector and is well-positioned to execute its business plan,” Ramsay remarked. “I look forward to working with my fellow Directors to support Moshe and his team as they pursue the exceptional opportunities that lie ahead.”

The new board member’s two-decades of experience in the gambling industry has seen him serve as CEO of MultiMedia Games, Chief Digital Officer of Aristocrat Technologies. 

His current position is Lead US Director for the Board and Chairman of the Regulatory and Compliance Committee at Aristocrat, whilst he also sits on the Board of Directors of Simplebet and the Operating Council of Arrow International. 

“We are thrilled to have Patrick join us in this journey that we are embarking upon,” Edree remarked. “His two decades of experience in our industry, with exposure to both the retail and online businesses, together with experience leading a Nasdaq-listed company, will be critical to our success. 

“We cannot think of a better-suited Chairman for our Board, and I am sure he will add tremendous value to our company.”

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