Information on the Target

Investcorp has initiated a €240 million single-asset continuation fund aimed at fostering the next growth phase of HWG Sababa, an Italian cybersecurity firm. This development follows a majority stake sale by the Investcorp Technology Partners Fund V (ITP V). This transaction signifies the first exit from the highly subscribed ITP V fund, which successfully closed at $570 million in 2024.

HWG Sababa was established in 2008 and is headquartered in Verona, Italy. It stands as a prominent independent cybersecurity provider within Southern Europe, specializing in security operations across IT, IoT, and OT environments. The company serves a diverse array of clients, including those in critical infrastructure, energy, finance, and manufacturing sectors. Since receiving investment from ITP V in 2022, HWG Sababa has impressively increased its revenues sixfold and has executed four acquisitions, notably acquiring Sababa Security in 2023.

Industry Overview in Italy

The cybersecurity industry in Italy is experiencing notable growth, driven by the increasing prevalence of cyber threats and the urgent need for businesses to adopt robust security measures. As organizations across various sectors streamline their operations, the demand for cybersecurity solutions has surged.

Italy's cybersecurity market is projected to expand significantly, with both established firms and startups working industriously to meet the rising demand for advanced security technologies. Factors such as regulatory requirements and digital transformation initiatives are compelling businesses to invest in comprehensive cybersecurity frameworks.

Additionally, Italy benefits from a growing pool of cybersecurity talent, supported by an educational system increasingly focused on technology and security. Collaborations between academic institutions and the private sector are fostering innovation and development within the industry.

Therefore, the outlook for cybersecurity firms in Italy remains positive, presenting abundant opportunities for established players like HWG Sababa to capture new market segments and enhance their operational capabilities.

The Rationale Behind the Deal

The establishment of the continuation fund for HWG Sababa underscores the company's robust growth trajectory and Investcorp’s successful collaboration with the firm’s leadership team, including Enrico Orlandi and Alessio Aceti. With the additional resources from the continuation fund, HWG Sababa is positioned to accelerate its international expansion and further its investment in operational technology and innovation.

The strategic use of this fund will enable HWG Sababa to pursue further acquisitions, thereby enhancing its competitive edge in the cybersecurity landscape while continuing to capitalize on emerging market trends.

Information About the Investor

Investcorp is a global investment firm with significant experience in private equity, real estate, credit management, and infrastructure. With a focus on delivering innovative financial solutions, Investcorp has successfully raised various investment funds, including the ITP V fund, which seeks to invest in scalable technology-enabled businesses.

Through its dedicated approach and strong industry relationships, Investcorp aims to support its portfolio companies in achieving sustainable growth. The firm looks to minimize risk while maximizing returns for its investors, making it a well-respected entity in the investment landscape.

View of Dealert

This deal positions HWG Sababa favorably within a rapidly evolving cybersecurity market, where the need for robust security solutions is paramount. By securing significant funding through the continuation vehicle, HWG Sababa is well-equipped to scale its operations both domestically and internationally, establishing itself as a formidable player within the sector.

Investcorp’s involvement as a seasoned investor not only provides the necessary financial backing but also offers valuable strategic guidance to help navigate the complexities of the cybersecurity industry. This strong partnership enhances the likelihood of achieving remarkable growth.

Moreover, the established management team at HWG Sababa demonstrates a clear vision for the organization’s future. Their commitment to expanding IT, OT, and SOC services indicates a proactive approach to market demands, further appealing to investors and stakeholders.

In conclusion, this deal holds great potential for success, making it an attractive investment opportunity. The combination of significant financial resources, strategic support, and a dedicated management team positions HWG Sababa as well-prepared to capture growth in the expanding cybersecurity landscape.

View Original Article