Information on the Target

Epipoli, founded in 2000 by Gaetano Giannetto, is a leading international alternative payments provider based in Milan. The company has developed Italy's largest customer relationship management (CRM) and loyalty program, catering to over 6 million consumers. In addition to establishing its gift card business in 2006, Epipoli launched Italy's inaugural prepaid Mastercard in 2012, solidifying its market leadership. Currently, Epipoli collaborates with millions of customers, numerous distributors, and hundreds of retailers, boasting a turnover of approximately 400 million euros.

Operating at the convergence of payments, employee rewards, and customer engagement services, Epipoli is poised for further expansion. With the backing of Investcorp, the company aims to accelerate its growth strategy, enhancing its services platform and broadening its customer base both in Italy and internationally.

Industry Overview in Italy

The payments industry in Italy has undergone significant transformation in recent years, driven by technological advancements and changing consumer preferences. The demand for alternative payment solutions has surged, propelled by the rapid adoption of digital technologies and a shift toward e-commerce. As Italian consumers increasingly seek seamless and flexible payment options, companies like Epipoli have capitalized on this lucrative market opportunity.

Moreover, the loyalty and rewards segment has grown correspondingly, as businesses recognize the value of fostering customer engagement through innovative reward programs. This environment has enabled Epipoli to thrive by establishing robust partnerships with various retailers and creating compelling loyalty offerings.

The Italian government has also introduced several initiatives aimed at promoting cashless transactions, further bolstering the alternative payments market. These initiatives are designed to modernize the payments landscape while enhancing fiscal transparency and reducing the prevalence of tax evasion.

As digital payment solutions continue to gain traction, investment in the technology sector is critical for companies looking to stay competitive. With Italy's growing emphasis on digital transformation, the payments industry is expected to expand significantly, offering promising prospects for companies like Epipoli.

The Rationale Behind the Deal

The acquisition of Epipoli by Investcorp presents a strategic opportunity to leverage the company's established market presence and enhance its growth trajectory. With a proven track record of sustainable revenue growth and a comprehensive suite of innovative payment solutions, Epipoli is well-positioned to benefit from Investcorp’s expertise in technology and international expansion.

This partnership aims to expand Epipoli's footprint in Europe, capitalizing on the increasing demand for alternative payment methods. Investcorp's support is expected to facilitate the company's efforts to innovate and diversify its product offerings while strengthening its leadership position in the Italian market.

Information About the Investor

Investcorp is a global alternative investment firm with a significant presence in Europe, having invested over €2 billion in various companies across the region since 2012. The firm specializes in acquiring technology-enabled businesses and has a rich history of supporting high-growth companies. Additionally, its investments include notable Italian firms such as SEC Newgate and Dainese.

With a deep understanding of the payments industry and extensive experience in helping businesses scale, Investcorp is well-equipped to support Epipoli’s ambitions for growth. The firm’s commitment to fostering innovation aligns seamlessly with Epipoli’s objectives, making it an ideal partner for this next phase of development.

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Investing in Epipoli represents a compelling opportunity for Investcorp, particularly given the company's momentum in the burgeoning alternative payments landscape. The strategic partnership is likely to foster innovation and product development while expanding Epipoli's reach across Europe, solidifying its competitive edge.

Furthermore, the management team's commitment and the established market presence provide a solid foundation for continued success. The previous growth trajectory under Bregal Milestone demonstrated Epipoli's capability to scale effectively, and with Investcorp’s guidance, the potential for accelerated growth is substantial.

However, as with any investment, potential challenges such as market competition and regulatory changes must be considered. Nonetheless, the positive outlook for the payments industry in Italy, combined with Investcorp's resources and expertise, suggests that this acquisition is poised to yield favorable results.

Overall, the pairing of Investcorp's strategic vision and Epipoli's established market position should not only enhance the company's growth prospects but also make the deal a potentially lucrative investment.

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