Fondo Strategico Italiano (FSI), the investment vehicle of Cassa Depositi e Prestiti in Italy, has bought 42.3% of SIA (SIA) for an investment of approximately € 204 million, in addition to € 77 million in debt financing.
SIA provides technology and infrastructure services for financial institutions, central banks and public administration in Italy and Europe.
FSI signed the binding contract in partnership with Italian private equity investor F2i SGR and project finance company Orizzonte, which will purchase 10.3% and 6.7% of SIA respectively. The consortium will acquire a total of 59.3% of SIA from Intesa San Paolo, Unicredit, Monte dei Paschi di Siena and Banca Nazionale del Lavoro. Banca Intesa e Unicredit will remain shareholders of the company with a total 8% interest, while Monte dei Paschi di Siena and Banca Nazionale del Lavoro, whose interests will be purchased by F2i, will exit the capital of SIA.
The transaction values for 100% of SIA equity at € 765 million, corresponding to approximately 8 times 2013 expected normalized EBITDA.
Closing of the transaction is subject to clearance from Bank of Italy and antitrust authority.
Founded in 1977 by the Bank of Italy, SIA is a company of major national interest. In 2012 it reported revenues of about € 350 million and EBITDA of approximately € 90 million. The group employs roughly 1,500 people, almost entirely in Italy, in addition to generating significant business for technological providers and software developers.
“SIA has a key role for the financial system” – commented Giovanni Gorno Tempini, FSI Chairman – with excellent technology and profitability levels, which position it among sector leaders”.
“FSI has invested in SIA – added Maurizio Tamagnini, FSI CEO – with the aim of accelerating penetration of e-payments, improving the support for the management of public debt – through the partnership with Monte Titoli and Borsa italiana – and stimulating the digitalization of Public Administration”.
Through their investment, FSI, F2i and Orizzonte aim to further strengthen the SIA competitive position, stimulating growth (both organic and through add-ons) and position the company to have an increasingly more important role in its sector, particularly in the following areas:
– Strengthening the strategic partnership with Borsa Italiana and London Stock Exchange for the MTS and Monte Titoli platforms. SIA manages the technological platforms for the MTS trading and Monte Titoli post-trading. MTS is the platform of Borsa Italiana for the wholesale dealing in fixed income securities (government e not government) and in particular in Italian government bonds. As such, the role of SIA is particularly strategic, as the services that SIA provides allow financial intermediaries from all over the world to deal in Italian public debt securities and participate in their auctions. Therefore, further efficiency and the development of functionalities are expected to broaden the investor base in Italian government bonds and to simplify their trading. FSI, F2i and Orizzonte aim at further strengthening the SIA competitive position in capital markets, enlarging – through investments and technology development – the range of service and functions which SIA can offer for the trading and custody of securities both in Italy and abroad.
– Sector concentration and outsourcing from banks. A stable shareholding and capital for growth are expected to allow SIA to be the catalyst of a process of aggregation in the electronic payments sector, which, both in Italy and Europe, remains quite fragmented. Furthermore, through its strong sector and technological leadership, SIA is expected to become an increasingly more credible partner for banks and other financial institutions in their outsourcing processes, thus allowing those entities to offer better services and reduce costs, while SIA grows organically.
– Increase penetration electronic payments in Italy. SIA will have a key role to stimulate electronic payments usage in Italy, thus contributing to bringing the black economy above ground. Electronic payments still present low penetration in Italy as compared to other European countries with approximately 60 per capita per year as compared to approx. 180 of the EU average and over 300 of the Netherlands and Nordics. As a result, the sector presents opportunities of growth and technological innovation.
FSI is a holding company with € 4 billion capital, whose strategic shareholder is Cassa Depositi e Prestiti. The company invests in companies whose objective it is to grow dimensionally, improve operating efficiency and strengthen their competitive position on domestic and foreign markets. Long-term investor FSI acquires mainly minority interests in companies of major national interest.
FSI-led Consortium Buys 59.3% of SIA
Fondo Strategico Italiano (FSI), the investment vehicle of Cassa Depositi e Prestiti in Italy, has bought 42.3% of SIA (SIA) for an investment of approximately € 204 million, in addition to € 77 million in debt financing.