What is DGS’s acquisition of Tow 80?

DGS has completed the acquisition of Tow 80 S.r.l., a company specialized in system integration services based on ServiceNow technology. Announced on 27 July 2022, the transaction enables DGS to enter the fast-growing ServiceNow market, a cloud platform dedicated to managing every phase of workflow digitalization and digital transformation.

Rome, 27 July 2022 – DGS S.p.A. (“DGS”), a portfolio company of H.I.G. Europe and one of the leading operators in the Italian Information Technology market, announced the completion of the acquisition of Tow 80 S.r.l. (“Tow 80” or the “Company”) from Beta 80. The investment also allows Beta 80 to make significant investments in its core business.

Who is Tow 80 and what services does it offer?

Tow 80, based in Milan, is the first company in Italy dedicated exclusively to the ServiceNow platform. It was awarded “Global Partner of the Year” in 2020 and is also an Elite Partner ServiceNow, the highest partnership level available for local players.

The company provides consulting, implementation, support and training services on the “Now Platform” to medium and large clients across various sectors. Its goal is to guide them toward workflow digitalization within a broader digital transformation process. Tow 80 has more than 250 certifications and around 100 active projects in Italy.

Why is the acquisition important for DGS?

The acquisition of Tow 80 represents the fourth add-on completed by DGS since it was acquired by H.I.G. in September 2020. Before Tow 80, the three completed add-ons were Lumit, Sarce and SMC. With this transaction, DGS strengthens its presence in a rapidly growing segment that is strategically important for software solutions for business process automation.

Vincenzo Fiengo, Co-CEO of DGS, commented: “The acquisition of Tow 80 represents another important step in the implementation of our strategic plan. By acquiring specific expertise in ServiceNow technology, a fast-growing segment that is strategically relevant in the world of software solutions for business process automation, our clients will benefit from an even richer offering of new and solid technical skills, thanks to which DGS will continue to support them in their digital transformation journey”.

What are the statements from Beta 80 and H.I.G. Capital?

Beta 80 sold Tow 80 to focus investments on its traditional core business. H.I.G. Capital, on the other hand, highlighted the opportunities for commercial strengthening and cross-selling for the DGS group, especially toward private clients in Northern Italy.

Alfredo Lovati, CEO of Beta 80 Group, added: “The sale of Tow 80 stems from the Group’s desire to focus the investments of the coming years on its traditional core business, represented by the three historical business lines: ICT Services & Solutions, Supply Chain & Warehouse Management and Emergency & Crisis Management. Today, the sale of Tow 80 allows us to make new and more significant investments in the strategic areas mentioned above for the coming years, with the goal of continuously improving our products and services, so that we become an increasingly key partner in our clients’ digital transformation journeys”.

Raffaele Legnani, Managing Director of H.I.G. Capital in Italy, concluded: “The acquisition of Tow 80 by DGS will strengthen the group’s penetration among private clients in Northern Italy and benefit from significant cross-selling opportunities for ServiceNow services with DGS clients”.

Who assisted the parties in the transaction?

Several legal and financial advisors assisted DGS and Beta 80 in the transaction. DGS was assisted by King & Wood Mallesons, Orrick Herrington Sutcliffe, Fineurop Soditic and Spada Partners. Beta 80 was assisted by SZA Studio Legale. The financing banks were assisted by Simmons & Simmons.

Who is DGS?

Based in Rome, DGS has operated for over 20 years in the ICT services market for public and private companies. The company specializes in digital solutions for business process transformation, cybersecurity services and, more recently, management consulting. DGS has historically supported large clients that are leaders in their respective sectors.

The group ensures high technical standards thanks to a 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 website listed is www.dgsspa.com.

How to contact DGS?

The references provided in the press release are those of DGS S.p.A. and Donatella Lembo. For communications, the mobile number +39 348 4256263 and the email address comunicazione@dgsspa.com are listed.

HEADQUARTERS (HQ): DGS S.p.A., Via Paolo di Dono, 73, 00142 Rome, Italy. VAT No. IT 03318271214.