The online gaming operator Codere Online entered into a definitive business combination agreement to go public via special purpose acquisition company DD3 Acquisition Corp II DDMX with an estimated pro forma enterprise value of approximately $350 million.
Martin Werner, co-founding partner of DD3 Capital Partners, is expected to join the Codere Online board of directors. Werner appeared on Benzinga's YouTube show "SPACs Attack" for an exclusive interview Wednesday.
Codere's Market Reach: Codere Online operates in six core markets, including Spain, Italy, Mexico, Colombia, Panama and the city of Buenos Aires, Argentina. The company only operates in regulated markets where it is licensed to do so, Werner said.
The company's financial projections are solely based on the markets where the company already operates, he said.
If any other markets announce regulations allowing Codere Online to operate, Werner expects growth of over 50%, he said.
The co-founding partner of DD3 expects that Codere Online could potentially secure a license in Brazil by the end of 2022.
From Partnerships To Profits: Codere Online has a partnership with Real Madrid, which creates value for the company through brand exposure, Werner said, adding that it is exploring other partnership opportunities.
Werner told Benzinga the combination of the quality of the team, the strength of the product and the omnichannel strategy will deliver growth and profitability for Codere Online.
Check out the full interview below:
SPAC Notes: After assessing multiple potential merger partners, DD3 settled on Codere Online because it's a high growth company in an accelerating sector, and it has a fantastic management team, Werner told Benzinga.
The capital and resources Codere Online will gain from the SPAC deal will position it to both "compete aggressively" in its current markets and enter new markets, he added.
Pending shareholder approval, the transaction is expected to close in the fourth quarter of 2021.
Related Link: Codere Online To Become First Publicly-traded Online Gaming And Sports Betting Operator In Latin America With SPAC Deal
DDMX Price Action: DD3 Acquisition Corp II has traded as high as $11.02 and as low as $9.73 since its IPO in December.
At last check Wednesday, the stock was trading near-flat at $9.92.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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