Webgenesys Acquired by HAT and TXT
Deal News | Nov 11, 2024 | Finance Community IT - 3 Private Equity
HAT, through its Technology Fund 5, along with TXT e-solutions, has fully acquired Webgenesys for a total of 63 million euros. In this acquisition, TXT obtained 84.1% while HAT secured the remaining 15.9%. Sellers Genesy Group, founded by Antonello Posterino and Raffaele Primo, will retain some involvement to ensure business continuity. Genesy Group will also receive 15.7 million euros in TXT shares as part of the transaction. The acquisition strengthens Webgenesys’ leadership in providing digital solutions for public administration, with expectations to further drive innovations in the sector. The deal was supported by several advisors, including Grant Thornton for financial diligence and OC&C for business strategy, highlighting the strategic nature of the investment. With a CAGR of 33% over the last five years, Webgenesys reported 2023 revenues of 31.5 million euros, aiming for 37 million euros in 2024. The closing of the deal is expected by the end of 2024.
Sectors
- Private Equity
- Technology and Digital Services
- Public Sector
Geography
- Italy – Webgenesys is an Italian company, and the deal involves Italian entities, tying the geography to Italy.
Industry
- Private Equity – The acquisition of Webgenesys was conducted by HAT Technology Fund 5, a private equity entity.
- Technology and Digital Services – Webgenesys' core business involves offering digital solutions such as AI, cybersecurity, and cloud services for Public Administration.
- Public Sector – Webgenesys supports the digital transformation of Public Administration, providing essential services in this industry.
Financials
- 63 million euros – The total value of the acquisition of Webgenesys by HAT and TXT.
- 15.7 million euros – Amount paid in TXT shares to Genesy Group as part of the acquisition.
- 31.5 million euros – Webgenesys' revenue for 2023.
- 22% – EBITDA margin for Webgenesys in 2023.
- 37 million euros – Projected revenue for Webgenesys in 2024.
- 200 million euros – Value of public contracts awarded to Webgenesys for 2025-2028.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Webgenesys | Target Company | Company | A leading digital enabler providing innovative solutions for Public Administration. |
| Genesy Group | Selling Company | Company | The holding company selling Webgenesys, controlled by the founders. |
| HAT Technology Fund 5 | Bidding Company | Company | The private equity fund that acquired 15.9% of Webgenesys. |
| TXT e-solutions | Bidding Company | Company | Acquired 84.1% of Webgenesys, specializes in digital transformation solutions. |
| Grant Thornton Financial Advisory Services | Financial Due Diligence Advisor | Company | Provided financial due diligence for the acquisition. |
| OC&C Strategy Consultants | Business Due Diligence Advisor | Company | Conducted business due diligence for the acquisition. |
| HSPI | Technical Due Diligence Advisor | Company | Responsible for technical due diligence activities. |
| ERM | ESG Due Diligence Advisor | Company | Provided ESG due diligence for the transaction. |
| Advant NCTM | Legal Advisor | Company | Provided legal advice, including acquisition contracts and legal due diligence. |
| Orrick, Herrington & Sutcliffe | Legal Advisor | Company | Provided legal assistance for acquisition contracts. |
| Russo De Rosa Associati | Tax Due Diligence Advisor | Company | Responsible for tax due diligence in the transaction. |
| Lyra Partners | Financial Advisor for Seller | Company | Advised Genesy Group on the sale process. |
| Simmons & Simmons | Legal Advisor for Seller | Company | Oversaw legal aspects for the sellers in the transaction. |
| Antonello Posterino | Founder and Company Executive | Person | Co-founder of Webgenesys, remains involved post-acquisition. |
| Raffaele Primo | Founder and Company Executive | Person | Co-founder of Webgenesys, remains involved post-acquisition. |