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02/2020

BAIN CAPITAL takes majority stake in ENGINEERING INGEGNERIA INFORMATICA

ITALY IT Services / Consulting & Integration EV 1b - 4b EUR

Context

Bain Capital has announced the signing of a definitive agreement to acquire a majority stake in Engineering from Apax Partners and NB Renaissance, in a secondary leveraged buyout (LBO) transaction. The deal marks the complete exit of Apax Partners, a long-standing shareholder, while NB Renaissance has chosen to reinvest in the company through new investment vehicles, demonstrating its commitment to supporting Engineering's next phase of growth. Founder Michele Cinaglia, who held approximately 12% of the company's capital, has sold his stake but will remain involved in the business to ensure strategic and managerial continuity. CEO Paolo Pandozy and the management team have also reinvested alongside the new shareholder. For Bain Capital, this acquisition represents a significant investment in the European digital services sector. The firm was attracted to Engineering's market-leading position in Italy, its portfolio of proprietary software, its exposure to high-growth markets related to digital transformation, and the numerous consolidation opportunities still present in the industry. The European IT services market remains highly fragmented, offering substantial potential for external growth. The post-acquisition strategy aims to continue the group's organic development while accelerating its international expansion through targeted acquisitions. Bain Capital and NB Renaissance have expressed their ambition to further strengthen Engineering's presence in Europe and in high-value-added activities such as cloud computing, data analytics, enterprise software, and digital services for public administrations and large corporations. The transaction was financed by a consortium of Italian and international banks, including Banca IMI, UniCredit, BNP Paribas, Credit Suisse, and Deutsche Bank. This deal represents one of the largest LBOs completed in the Italian technology sector during this period, highlighting the growing attractiveness of European digital platforms to major international private equity firms.

ENGINEERING INGEGNERIA INFORMATICA, which reported an EBITDA margin of LOGIN in 2019, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN to the average currently observed in the TMT (Tech, Media, Telecom) sector (14.8x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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Target

Established in 1980 and headquartered in Rome, Engineering is a leading European provider of digital services and software development solutions. The company supports private enterprises and public organizations in their digital transformation initiatives, offering a comprehensive range of services that encompasses software development, system integration, cloud computing, data analytics, cybersecurity, and industry-specific technology platforms. Over the years, Engineering has emerged as a trusted player in several strategic markets, including finance, public administration, healthcare, industry, telecommunications, energy, and public services. The group has also developed a portfolio of proprietary software solutions, enabling it to combine service delivery with recurring revenue streams from its technology platforms. With a presence in over 10 countries, including Italy, Belgium, Spain, Germany, Switzerland, Sweden, Norway, Serbia, Brazil, Argentina, and the United States, Engineering boasts an international network of more than 65 offices. As of 2019, the company employed over 11,000 professionals, representing a significant increase from approximately 8,100 employees four years prior, highlighting a strong growth trajectory.

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REFERENCES

Valuation range: EV 1b - 4b EUR

Revenue range: 1b - 3b EUR

EBITDA range: 100M - 200M EUR

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of ENGINEERING INGEGNERIA INFORMATICA by BAIN CAPITAL are reserved for mynth community members. Register for free to unlock full data.

Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Press release: view release

Target: engineering ingegneria informatica

Acquirer: bain capital