Acquisition of i3 by DGS: PLM strengthened in Southern Italy
DGS has acquired i3, a system integrator specializing in Product Lifecycle Management (PLM) applications, completing the seventh add-on since it entered the H.I.G. Capital portfolio. Announced in Milan on 1 December 2022, the transaction strengthens DGS’s presence in Southern Italy and consolidates the group’s PLM capabilities in manufacturing.
What did DGS announce on 1 December 2022?
On 1 December 2022, DGS S.p.A. announced the completion of the acquisition of i3 S.r.l., a Naples-based company specializing in consulting and system integration in the Product Lifecycle Management field. DGS is a portfolio company of H.I.G. Capital, an international investment fund with $52 billion of capital under management, and the acquisition of i3 represents the seventh add-on completed since DGS was acquired by H.I.G. Capital.
The transaction is part of DGS’s growth path in the Italian Information Technology market, where the company operates with a focus on the digital transformation of business processes and cybersecurity services.
Who is i3 and what does it do?
i3 is a company specializing in consulting services and system integration with a PLM focus. It offers customers services for designing and implementing IT strategy, as well as customization, integrated management, and maintenance of information systems. The company mainly works with large multinational corporations across several sectors.
The sectors listed are manufacturing, energy & utilities, telco & media, and aerospace & defence. i3 also has established relationships with the leading PLM software vendors, a key element of its market positioning.
What did the people involved in the deal say?
The acquisition was commented on by DGS, i3’s founders, and H.I.G. Capital. The statements highlight the strengthening of PLM capabilities, territorial presence in Southern Italy, and industrial synergies among the companies involved.
Vincenzo Fiengo, Co-CEO of DGS, commented: “We are very pleased with the acquisition of i3, which enhances our presence in Southern Italy and consolidates our PLM capabilities in manufacturing, strengthening our offering portfolio with highly innovative solutions able to meet even the most demanding clients.”
Claudio Petagna and Dario Rosario Paoletti, founders and shareholders of i3, added: “We are excited to bring our 25 years of activity and experience in the PDM (Product Data Management) and PLM sector to the DGS group, whose culture and corporate vision we share. We are absolutely certain that the synergies we will put in place will strengthen i3’s presence in the market.”
Raffaele Legnani, Managing Director in charge of H.I.G. Capital’s activities in Italy, concluded: “With the addition of i3 and its long-standing partnership with the most important PLM vendors, the DGS group further consolidates its position in the IT sector in Italy and improves its ability to deliver critical services to its clients.”
Who advised the parties in the transaction?
In the transaction, H.I.G. and DGS were advised by King & Wood Mallesons, Orrick Herrington Sutcliffe, Fineurop Soditic, and Spada Partners. Claudio Petagna and Dario Rosario Paoletti were advised by Prof. Avv. Clemente Pecoraro and the Sagit law firm. The financing banks were advised by Simmons & Simmons.
What is DGS’s profile?
DGS is headquartered in Rome and has been active for more than 25 years in the ICT services market for public and private companies. The company specializes in digital solutions for business process transformation, cybersecurity services, and management advisory. Its activities include application system integration projects and proprietary applications.
DGS has historically worked alongside large clients that are leaders in their respective sectors, ensuring high technical standards thanks to a workforce of more than 1,600 employees with 1,500 IT certifications and long-standing partnerships with major global software and application vendors. For more information, the press release refers to the website www.dgsspa.com.
What does the H.I.G. Capital profile say?
H.I.G. Capital is one of the leading international investment funds in private equity and alternative assets, with over $52 billion in capital under management. Based in Miami, it has a European presence with offices in London, Hamburg, Madrid, Paris, and Milan, with a team led by Managing Director Raffaele Legnani.
The firm specializes in providing capital and financing to small and medium-sized businesses with a flexible, hands-on approach focused on value creation. Since its founding in 1993, H.I.G. Capital has invested in and managed more than 300 companies worldwide. Its current portfolio includes more than 100 companies with aggregate revenue of over €30 billion. The total commitments managed by H.I.G. Capital and its affiliates is the figure used for the $52 billion data point.
What activities does H.I.G. Capital include?
The press release lists four main investment areas for H.I.G. Capital. Each area is aimed at specific segments of the financial and industrial markets.
- Private equity: investments in management buyouts, recapitalizations, and carve-outs of industrial and services companies, whether profitable or underperforming.
- Debt: investments in senior, unitranche, and junior financing instruments, both in primary and secondary markets; through the WhiteHorse vehicle family, H.I.G. is also a leading CLO manager and manages a listed BDC, WhiteHorse Finance.
- Real estate: investments in value-add real estate assets that can benefit from more efficient asset management.
- Infrastructure: value-add and core plus investments in the infrastructure sector.
Is the press release available?
The press release can be downloaded from the dedicated page and is indicated as “download the press release.” The attached document is available in PDF format.
The official website cited in the text is www.dgsspa.com, while the reference provided for H.I.G. Capital is www.higcapital.com.
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