H.I.G. Capital News
H.I.G. European Capital Partners Italy S.r.l.
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H.I.G. Capital Acquires DGS S.p.A.
The investment will support the further growth of DGS Group, a leading Italian information technology specialist
MILAN – September 11, 2020 – H.I.G. Europe (“H.I.G.”), the European affiliate of H.I.G. Capital, a leading global private equity investment firm with more than €34 billion of equity capital under management, announced today the acquisition by an affiliate of a controlling stake in DGS S.p.A. (the “Company”), a leading firm in the Italian information technology industry.
With revenues above €115 million and 890 employees, DGS has, since its foundation in 1997, supported blue-chip customers in the design, integration and maintenance of complex IT systems with a specialization in digital transformation and cybersecurity services.
The Company provides digital solutions (system integration on main ERP, CRM, PLM/SCM platform software and proprietary custom applications), the full spectrum of cybersecurity services (advisory, data protection, network protection, monitoring & control services) and IT management consultancy. Leveraging its partnerships with leading global IT vendors and a specialized technical staff with 1,500 IT certifications, DGS offers customized solutions to a number of high-profile customers active in a diversified range of industries including public sector, energy, industrial manufacturing, financial services and telecommunications.
H.I.G. has extensive experience in the IT industry, with over 30 transactions completed globally, and intends to support DGS in the next phase of development, with the aim of capitalizing on both organic and inorganic growth opportunities.
Vincenzo Fiengo and Salvatore Frosina, founders, Co-CEOs, and current shareholders of DGS, will reinvest alongside H.I.G. and will continue to lead the Company. They commented: “The investment by H.I.G., a global private equity firm, is a recognition of the impressive growth potential of DGS, given its leading position in the market and its exposure to fast-growing segments such as digital transformation and cybersecurity. Backed by H.I.G., we believe the Company will be able to develop more quickly, pursuing a combination of organic initiatives and targeted acquisitions”.
Raffaele Legnani, Managing Director and head of H.I.G.’s office in Italy, added: "DGS brings a strong competitive positioning in Italy, as evidenced by its above market growth and an impressive track-record with its blue-chip customer base and advanced technical capabilities”.
Based in Rome, DGS has been active in the ICT industry for over 20 years. The Company specialises in providing solutions for digital transformation of business processes (including application system integration and proprietary custom applications), cybersecurity services and IT management consultancy. DGS serves large customers, leaders in their respective industries, ensuring high technical standards, with a staff of 890 employees with 1,500 IT certifications and long-lasting partnerships with the major global IT vendors. With the aim of further expanding its market reach and offering, DGS has recently completed the acquisition of two companies: Maneat, with a strong positioning in the automotive and aerospace industries, and Porini, which provides a range of proprietary custom applications addressing mainly the fashion industry.
About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with over €34 billion of equity capital under management.* Based in Miami, and with European offices in London, Hamburg, Madrid, Milan, Paris, and U.S. and Latin American offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, Atlanta, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach:
- H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
- H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
- H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm's current portfolio includes more than 100 companies with combined sales in excess of €28 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
* Based on total capital commitments managed by H.I.G. Capital and affiliates.