Hutton Collins injects €50m into Dedalus

Ellie Pullen
22 January 2014

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Hutton Collins has made a €50m investment in Dedalus, an Italian healthcare IT systems provider, along with a further €15m from co-investors.

Hutton Collins's investment came in the form of a subordinated loan and equity for a minority stake. The firm has acquired a 14% stake in the business.

Hutton Collins acquired its stake in Dedalus from exiting investor Intesa Sanpaolo, as well as some smaller passive shareholders, said Hutton Collins partner Mauro Moretti.

According to unquote" data, Dedalus was previously backed by Intesa Sanpaolo, Sviluppo Imprese Centro Italia (SICI) and Mandarin Capital Partners. Mandarin is remaining as a shareholder in Dedalus following Hutton Collins's investment.

The debt and equity injection will allow Dedalus to enter the Egyptian and Saudi Arabian markets.

Previous funding
In January 2008, Intesa Sanpaolo and SICI took part in a €13.6m deal for Dedalus alongside the former shareholders of Metafora Informatica, which had recently been acquired by Dedalus. Intesa Sanpaolo provided €7m for a 23% stake, while SICI injected €3m for a 10% shareholding. Metafora Informatica's former shareholders provided the remaining €3.6m for a 10% stake.

This was followed in October 2010 by a €16.15m capital injection by Mandarin, which acquired a 19.2% stake in the business.

Company
Founded in 1990, Dedalus is headquartered in Florence with 11 other offices in Italy and 18 abroad. The company provides software for the healthcare industry, namely general practitioners (GP) and primary care paediatricians.

The business develops its software for the areas of territory medicine, which includes platforms for GPs, social care and primary care paediatricians; clinical practices, which includes image diagnostics, test lab processes and pathologic anatomy; and healthcare, which includes human resources systems, hospitalisation processes and accounting solutions. According to Dedalus, its software is used by more than 21,000 doctors.

Dedalus employs more than 900 staff and generates revenues of approximately €70m, as well as an EBITDA of €17m. The company expects 30-40% of its turnover to be generated from overseas markets by 2016.

People
Giorgio Moretti is the founder and CEO of Dedalus. Mauro Moretti is a partner at Hutton Collins.

Advisers
Equity – DVR Capital (M&A); Clifford Chance (Tax); Gianni Origoni Grippo Cappelli & Partners (Legal); Eversheds Bianchini (Legal); KPMG (Financial due diligence); PWC-TLS (Tax).