Target Information

Red Fish Kapital S.p.A., through its investment vehicle dedicated to startups and innovative SMEs, Innovative-RFK S.p.A., has acquired a 20% stake in Websolute S.p.A., a digital company based in Pesaro, Italy, engaged in the digitization of Italian enterprises. Websolute leads a group that includes seven other companies operating within the digital sector, such as Moca Interactive, DNA Family Network, XPlace, Ws Commerce, Ws Techlab, Shinteck, and Ws More. Over the past two years, the company has undergone a strategic transformation into a comprehensive digital firm, employing over 150 professionals. In 2017, Websolute reported revenues of €10.6 million, an EBITDA of €1.3 million, and a net financial position of €1.76 million.

Websolute has successfully attracted prominent brands, including Scavolini, Rocchetta, De Cecco, and Galbusera, among its more than 400 high-profile clients. The partnership with Innovative-RFK will facilitate the continuation of the company's growth, international expansion, and broaden the potential business area linked to its activities through a strategic acquisition plan.

Industry Overview in Italy

The digital sector in Italy has experienced robust growth in recent years, driven by increasing demand for digital transformation across various industries. Businesses are investing significantly in technology to enhance operational efficiency and customer engagement. The Italian government has also introduced initiatives to support digital innovation, fostering a conducive environment for startups and established companies alike.

With a growing focus on e-commerce and online services, Italian consumers are increasingly embracing digital solutions, leading to a surge in opportunities for digital companies. The competition remains fierce as many players strive to offer innovative services and tailor-made solutions to meet evolving customer needs.

Moreover, the rising awareness of digital marketing strategies is prompting more companies to seek specialized digital service providers. As Italian enterprises recognize the importance of a strong digital presence, the demand for comprehensive digitalization services is expected to continue its upward trajectory.

Italy's digital landscape is further bolstered by the presence of various accelerators and venture capital funds supporting startups. These initiatives are vital in nurturing entrepreneurs and fostering innovation, thus contributing significantly to the expansion of the digital economy.

Rationale Behind the Deal

The acquisition of a 20% stake in Websolute by Innovative-RFK is a strategic move aimed at bolstering the company’s growth and expansion efforts. By leveraging Innovative-RFK's resources and network, Websolute can enhance its operational capabilities and expand its international footprint.

Additionally, this investment aligns with Websolute's ambition to pursue an IPO on AIM Italia by 2019, positioning the company to access broader capital markets and accelerate its growth trajectory.

Investor Information

Innovative-RFK S.p.A. is recognized for its commitment to investing in innovative startups and SMEs within the technology sector. The firm focuses on creating value by identifying high-potential companies and facilitating their growth through strategic partnerships and investments.

With a proven track record of nurturing startups, Innovative-RFK is well-equipped to support Websolute in its endeavors. The firm not only provides financial backing but also offers strategic guidance to enhance operational efficiency and market competitiveness.

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From an analytical perspective, the acquisition of a 20% stake in Websolute by Innovative-RFK represents a strong investment opportunity. Given Websolute's impressive growth metrics and its strategic positioning within the rapidly expanding Italian digital market, the move aligns well with current industry trends favoring digital transformation.

The ambitious plan for an IPO on AIM Italia also demonstrates Websolute's forward-thinking strategy, positioning the company to potentially unlock additional capital and visibility as it scales operations. Such initiatives often attract further investment and partnership opportunities, enhancing the overall valuation of the company.

However, potential risks exist, encompassing competition in the digital landscape and the execution of growth strategies. Successful navigation of these challenges will be crucial for Websolute to ensure sustained growth and to achieve its IPO objectives. If managed adeptly, this investment could yield significant returns for Innovative-RFK while also setting the stage for Websolute’s future success.

In conclusion, the partnership between Innovative-RFK and Websolute appears to offer promising prospects, with both parties positioned to benefit from the burgeoning digital sector in Italy. Continued focus on innovation and market adaptability will be key drivers of success in this evolving landscape.

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