Information on the Target

Lumata is a newly established entity formed through the collaboration of leading private equity firm Francisco Partners and Buongiorno S.p.A. (FTSE Italy STAR: BNG), a global leader in paid mobile content. This joint venture consolidates several B2B assets of Buongiorno under one entity, backed by substantial private equity investment. Lumata is strategically positioned to operate on a global scale within the rapidly expanding mobile marketing sector, which is experiencing an annual growth rate of 30%.

With an initial annual turnover exceeding €50 million, Lumata boasts a workforce of over 500 employees and operates from 15 offices worldwide. The company aims to serve a diverse client base, including mobile operators, OEMs, and consumer brands, and has already secured partnerships with well-known names like Orange, T-Mobile, Telecom Italia Mobile, Verizon, Airtel, MTS, and Telefonica, as well as reputable brands such as Nestlé, P&G, HP, and Espresso Group.

Industry Overview in Italy

The mobile marketing industry in Italy is experiencing significant transformation, driven by technological advancements and shifting consumer behaviors. As mobile devices become more integrated into daily life, businesses are increasingly leveraging mobile channels to engage with customers more effectively. This shift is reflected in the optimistic growth forecasts for the sector, with many analysts predicting robust growth driven by innovation in mobile technologies and a broader digital ecosystem.

Italy’s mobile marketing landscape is characterized by a diverse range of players, from large telecom companies to agile startups offering innovative marketing solutions. The competitive environment fosters creativity and pushes companies to continually enhance their service offerings. As a result, there is a strong demand for effective strategies that combine mobile advertising, customer engagement, and data analytics to deliver tailored communication.

Furthermore, the increasing penetration of smartphones and mobile internet connectivity across the country facilitates deeper consumer engagement, making mobile marketing an essential component for businesses seeking to thrive in this digital age. As a result, the Italian mobile marketing sector is set for continuous evolution and growth.

The Rationale Behind the Deal

The partnership between Francisco Partners and Buongiorno S.p.A. to form Lumata is supported by a clear vision of capitalizing on the burgeoning mobile marketing sector. Francisco Partners recognized the immense opportunity presented by this market and is committed to leveraging its expertise to accelerate Lumata’s growth trajectory. By combining Buongiorno's established B2B foundation with Francisco's investment acumen, Lumata is well-positioned to emerge as a leader in mobile marketing.

This strategic collaboration is aimed at transforming how businesses engage with customers through mobile channels, which have proven to be increasingly relevant in today’s digital environment. With a robust client portfolio and a strong team led by an experienced CEO, Lumata is ready to seize emerging opportunities in the market.

Information About the Investor

Francisco Partners is a prominent private equity firm known for specializing in technology and technology-enabled businesses. With a strong track record of identifying and nurturing market leaders, Francisco Partners is well-equipped to support Lumata’s ambitions for growth. The firm’s approach combines capital investment with strategic guidance, enabling portfolio companies to scale effectively and enhance their market positions.

With a proven expertise in the mobile and software sectors, Francisco Partners brings valuable resources to Lumata, including operational insights and access to an extensive network. The firm’s principal, Matt Spetzler, expressed confidence in the mobile marketing space and emphasized the importance of building Lumata into a category leader.

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The formation of Lumata through the collaboration of Francisco Partners and Buongiorno S.p.A. presents a promising investment opportunity with significant growth potential. The mobile marketing sector is robustly expanding, and Lumata is strategically positioned to leverage this growth by harnessing the strengths of its parent companies.

Moreover, Lumata's leadership under Thomas Enraght-Moony, a seasoned executive with experience in high-growth environments, adds further confidence in the firm's strategic direction. Enraght-Moony's emphasis on innovation and customer engagement in the mobile space aligns well with current market trends, suggesting that Lumata could effectively meet the evolving demands of businesses and consumers alike.

Overall, this deal positions Lumata to become a formidable player in the mobile marketing arena, particularly given the robust portfolio of existing tier-one clients. The combination of strong leadership, significant investments, and a clear growth strategy makes this venture an exciting prospect in the technology-driven marketplace.

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