Codere Online makes Nasdaq debut as SPAC merger closes
The combination – first announced in June – makes Codere Online, which spun off of the wider Codere Group, the first Latin America-facing online gambling operator to go public on a US exchange.
The operator will receive gross proceeds of around $116m (£87.1m/€102.2m), or $103m after transaction-related expenses are excluded. These funds will be used to ramp up marketing in Latin America, and support technology investment.
“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,” Moshe Edree, managing director of Codere Online, said.
The deal comes soon after the Codere Group completed a restructuring deal that saw creditors take charge of the business. This followed financial struggles caused by high debts, which were exacerbated by Covid-19 lockdowns in its core markets and currency exchange fluctuations.
Vicente Di Loreto, chief executive of Codere Group, said the combination of these two deals will allow the online business to flourish as an independent entity.
“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,” he said.
With the closure of the deal, the new combined business has also appointed Patrick J Ramsay, lead US director and former chief digital officer for Aristocrat Technologies, as its new chairman. Ramsay also served as chief executive of Multimedia Games from 2010 until 2014 and sits on the board of technology supplier Simplebet.
“We are thrilled to have Patrick join us in this journey that we are embarking upon,” Edree said. “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.”
Ramsay will lead a board that also includes Edree, Codere online CFO Oscar Iglesias, Codere Group chief of strategy Alejandro Rodino, former DD3 chairman and CEO Dr. Martin Werner, MG Capital managing partner Daniel Valdez and independent director Laurent Teitgen.
“Codere Online operates in the fast-growing online segment of the gaming sector and is well-positioned to execute its business plan,” Ramsay said. “I look forward to working with my fellow directors to support Moshe and his team as they pursue the exceptional opportunities that lie ahead.”