Target Company Overview

Qinet, a Managed Services Provider established in 2003 and based in Turin, Italy, specializes in networking and cybersecurity. The firm employs over 40 highly skilled senior professionals dedicated to providing secure and efficient ICT infrastructure capable of handling critical operational challenges and cyberattacks. Qinet's vision is to deliver robust and secure infrastructures, designed to counteract various threats, while its mission revolves around offering outsourced cybersecurity services to loyal clients focused on their core business.

Through its Security Operations Center (SOC), Qinet implements comprehensive security systems that safeguard, protect, replicate, and recover data. The company also conducts continuous monitoring of potential vulnerabilities associated with corporate data flows. In addition, Qinet provides a complete post-installation management service that includes 24/7 risk monitoring through its Network Operations Center (NOC).

Industry Overview in Italy

The cybersecurity sector in Italy has emerged as a critical industry in the face of increasing digital threats and vulnerabilities. Italian companies are recognizing the imperative need for enhanced security measures to protect their digital assets. With cyber threats becoming more sophisticated, businesses must adopt comprehensive cybersecurity strategies to safeguard sensitive information and maintain operational integrity.

Moreover, the landscape is characterized by a growing demand for advanced technologies and services, including Security Operations Centers, threat intelligence, and incident response solutions. As businesses continue to embrace digital transformation, the need for specialized cybersecurity providers like Qinet has intensified, reflecting the sector's growth potential.

The Italian government has also emphasized the importance of cybersecurity in national security and economic resilience, leading to increased investments and regulatory frameworks aimed at bolstering the cybersecurity infrastructure across various sectors. This supportive environment positions the industry favorably for continued expansion and innovation.

Additionally, as the breadth of cyber threats expands, the competition within the cybersecurity field intensifies, prompting companies to innovate and improve their service offerings continually. This dynamic industry landscape presents significant opportunities for growth and strategic partnerships.

Rationale Behind the Deal

The primary objective of this investment by ABC Capital Partners and Metrika Tech is to support Livio Traversa, Qinet's founder, in the company's future development phase. The investment aims to facilitate strategic and commercial expansion while integrating with other active operators in the cybersecurity market segment. This collaboration is expected to accelerate Qinet's growth trajectory, which has seen remarkable progress in recent years, reinforcing its market position.

Investor Information

ABC Capital Partners, co-founded by Dario Albarello, Francesco Baroncelli, and Alessandro Cozzi, provided advisory services to the Metrika Tech Fund in this transaction. Metrika Tech is a private equity fund supported by high-profile private investors with ties to Italian entrepreneurship, particularly in the information technology and high finance sectors. Specializing in majority investment operations within the small and mid-market segment, Metrika Tech focuses on acquiring outstanding technology companies, with revenues typically ranging from €5 million to €50 million.

To date, Metrika Tech has completed its second closing, surpassing €21 million, with a fundraising target of €30 million. The fund intends to execute a limited number of transactions to develop an industrial investment model, particularly emphasizing the buy-and-build strategy for its portfolio companies.

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This investment is poised to be a strategic move for both Qinet and ABC Capital Partners. By supporting Qinet in its expansion plans, the investment aligns with the growing demand for robust cybersecurity solutions and the increasing importance of safeguarding digital infrastructures. Qinet’s established market presence and expertise present an attractive opportunity for Metrika Tech to leverage its resources effectively.

Moreover, Qinet's commitment to innovation and adaptation in a rapidly evolving industry is essential for maintaining its competitive edge. The focus on integrating with other operators in the market could yield synergistic benefits, enhancing service offerings and increasing market penetration.

Furthermore, the emphasis on strategic growth and the nurturing of existing client relationships underpins a sustainable business model that could deliver significant returns on investment. The backing by ABC Capital Partners and Metrika Tech should facilitate Qinet's ability to scale while navigating potential market challenges.

Overall, this deal has the potential to be a successful investment, given the favorable market conditions and Qinet's strong foundational capabilities in cybersecurity.

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