Codere Online Luxembourg has entered into a definitive business combination agreement with DD3 Acquisition II that values the combined company at an estimated pro forma enterprise value of approximately $350 million. That would be 2.3x Codere Online’s estimated 2022 revenue of approximately $150 million, and an implied equity market capitalization of approximately $500 million.
Terms call for Codere investors to receive DD3’s $125 million cash in trust, a PIPE commitment of more than $67 million, provided by Baron Funds, MG Capital, LarrainVial and the SPAC’s sponsor DD3 Capital Partners. The PIPE, together with a further commitment by Baron Funds to roll-over approximately $10 million of DD3 public shares, fulfills the minimum $77 million in cash required to close the business combination, the companies said in a joint statement.
Codere Online launched in 2014 as a part of the international gaming operator Codere Group, offering online sports betting and online casino through its websites and mobile applications.
This is DD3 Capital Partner’s second SPAC. DD3’s first SPAC merged with Betterware de Mexico in March 2020. Read more.