DGS acquires InnovatesApp: what does the transaction involve?

DGS, a portfolio company of H.I.G. Capital, has acquired InnovatesApp S.r.l., a company specialized in end-to-end services for the adoption of applications and technologies from the SAP “Intelligent Enterprise” suite. The transaction, completed on August 1, 2022 in Milan, marks the fifth add-on completed by DGS since it was acquired by H.I.G. in September 2020, following Lumit, Sarce, SMC and Tow 80.

With this acquisition, DGS strengthens its positioning and increases cross-selling opportunities on blue chip clients. H.I.G. Europe, the European arm of H.I.G. Capital, announced the completion of the acquisition as part of the growth strategy of its portfolio company DGS S.p.A., one of the leading operators in the Italian Information Technology market, specialized in the digital transformation of business processes and cybersecurity services.

Who is InnovatesApp?

InnovatesApp is one of the leading SAP partners and supports clients in the digital transformation of processes, infrastructure management, data and analytics. The company is based in Rome and offers consulting, implementation and application migration services. It is also a “SAP Services Preferred Partner” for specialized consulting services and has recently obtained the “SAP Gold Partner” certification for the resale of software licenses or subscriptions.

InnovatesApp mainly serves medium and large companies across several sectors, including transportation, energy & utilities, telco & media, manufacturing, retail, financial and the public sector. Joining DGS enhances these capabilities and integrates them into the group portfolio, with the aim of expanding up-selling and cross-selling opportunities.

What did the key players say?

The parties linked the acquisition to a new milestone in the group’s development path and to further growth opportunities. Vincenzo Fiengo, Co-CEO of DGS, stressed that the transaction makes it possible to enrich the offering with SAP skills and specializations, strengthening the group’s presence in the main markets in which it operates.

“The acquisition of InnovatesApp marks a new milestone in the group’s strategic growth and development path, and allows us to enrich our service portfolio with SAP skills and specializations that create new cross-selling opportunities on blue chip clients and further strengthen our presence in the main markets in which we operate”.

Maurizio Russo, current shareholder and CEO of InnovatesApp, will remain a shareholder of the company and will keep an active role in managing this new growth phase. He added that the excellent results achieved over the last three years make it possible to seize an opportunity to support the growth targets set for the next three-year period.

“The excellent results achieved over the last three years now allow us to seize an extraordinary opportunity to support the ambitious growth objectives set for the next three-year period. Joining a solid, dynamic group with a shared vision of the future of our business will ensure new up-selling and cross-selling opportunities, in close collaboration with the other companies of the DGS family”.

Raffaele Legnani, Managing Director of H.I.G. Capital in Italy, concluded that the acquisition consolidates the group’s positioning with blue chip clients, expands the SAP platform offering and makes DGS an increasingly important player in the Italian market.

“We are proud of the growth journey undertaken by DGS. This acquisition consolidates the group’s positioning with blue chip clients, expanding its offering to the SAP platform and making DGS an increasingly important player in the Italian market”.

Who advised on the transaction?

In the transaction, H.I.G. and DGS were assisted by King & Wood Mallesons, Orrick Herrington Sutcliffe, Fineurop Soditic and Spada Partners. InnovatesApp and the sellers were assisted by the law firm Ughi e Nunziante, TCFCT – Studio Associato Consulenza Societaria e Tributaria – and Mama Advisory. Maurizio Russo was assisted by Melex law firm. The financing banks were assisted by Simmons & Simmons.

What does DGS’s profile say?

DGS, based in Rome, has been operating for over 20 years in the ICT services market for public and private enterprises. The company specializes in digital solutions for business process transformation, including application system integration projects and proprietary applications, cybersecurity services and, more recently, management consulting.

DGS has historically supported large-scale clients leading their respective sectors, ensuring high technical standards thanks to its large workforce of over 1,200 employees with 1,500 IT certifications and long-standing partnerships with the major global software and application vendors. For further information, the reference website is www.dgsspa.com.

What emerges from H.I.G. Capital’s profile?

H.I.G. is one of the leading international investment funds in the private equity and alternative assets sector, with $50 billion in assets under management. Based in Miami, it is present in the United States and Latin America with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, Atlanta, Rio de Janeiro, São Paulo and Bogota, and in Europe with offices in London, Hamburg, Madrid, Paris and Milan, with a team led by Managing Director Raffaele Legnani.

H.I.G. Capital specializes in providing capital and financing to small and medium-sized enterprises with a flexible, industrial approach focused on value creation. Since 1993, the year it was founded, it has invested in and managed more than 300 companies worldwide. Its current portfolio includes more than 100 companies with total revenues of over €30 billion.

1. private equity funds invest in management buyouts, recapitalizations and carve-outs of industrial and service companies, both profitable and underperforming;
2. debt funds invest in senior, unitranche and junior financing instruments, in both the primary and secondary markets; through the WhiteHorse family of vehicles, HIG is also a leading CLO manager and manages a listed BDC, WhiteHorse Finance;
3. real estate funds invest in value-add real estate assets that can benefit from more efficient asset management;
4. the Infrastructure fund focuses on value-add and core plus investments in the infrastructure sector.

What contact and corporate details are provided?

The press release includes the references for H.I.G. European Capital Partners Italy, Barabino & Partners and DGS S.p.A., as well as DGS’s registered office. The HQ of DGS S.p.A. is located at Via Paolo di Dono, 73, 00142 Rome, Italy, VAT No. IT 03318271214. Links to “Our offices”, “Write to us” and “Site map” are also included, along with the LinkedIn, Facebook, Instagram and YouTube social profiles.

The text also includes the “ABOUT DGS” section, which reiterates that DGS has been operating for over 25 years in the ICT services market for public and private enterprises and that the company specializes in digital solutions for business process transformation, cybersecurity services and management advisory, with over 1,500 employees and 1,500 IT certifications. A press release download reference via “CLICK HERE” is also present.