HIG buys cybersecurity specialist DGS

A source familiar with the company told Unquote that HIG bought a 51% stake, while DGS co-founders Vincenzo Fiengo and Salvatore Frosina reinvested in the company and retained the remainder.

HIG deployed capital from HIG European Capital Partners II (HECP II), which closed on €825m in July 2013, exceeding its €760m target after just three months on the road. The GP recently launched a new buyout fund, HIG European Capital Partners III, with a €1bn target, Unquote understands.

The deal was also financed with a debt package composed of senior debt provided by Ubi Banca, Banco BPM, Intesa Sanpaolo, Deutsche Bank and Muzinich's Springrowth Fund. A mezzanine facility was provided by Antares AZ I private debt fund, which is managed by Azimut Libera Impresa.

HIG managing director and head of HIG Italy Raffaele Legnani told Unquote: "We plan to boost the company's growth by pursuing a buy-and-build strategy with the aim of creating a leading platform across the IT, digital transformaton and cybersecurity market in Italy."

Company
Established in 1997 and based in Rome, DGS is an IT expert that specialises in cybersecurity, digital transformation and management consulting for companies operating in the energy and utilities, financial services, manufacturing, retail, distribution, telecommunications and media industries.

The company offers strategic consultancy, design, development, integration, implementation and maintenance of complex IT infrastructures.

DGS generated EBITDA of around €12-15m from revenues of €115m in 2019.

People
HIG Capital – Raffaele Legnani (managing director, head of HIG Italy).
DGS – Vincenzo Fiengo, Salvatore Frosina (co-founders).

Advisers
Fineurop Soditic (corporate finance); Hogan Lovells (legal); Deloitte (financial due diligence).

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