Information on the Target

Abissi, headquartered in Cagliari, Italy, is a leading company in the cybersecurity sector, particularly known for its 'Red Team' services. Founded in 2014, the company specializes in cutting-edge offerings that encompass Cyber Security, Cyber Surveillance, Cyber Threat Intelligence, Application Security, IoT/Automotive Cyber Security, and Digital Forensics. Abissi's expertise has been developed through partnerships with significant clients across diverse sectors, including critical infrastructures and government organizations such as Energy, Oil & Gas, Industrial, Automotive, Transport, Avionics, and Public Administration.

The mission of Abissi is to deliver robust cybersecurity solutions that aid clients in navigating challenges posed by industrial espionage, organized crime, terrorism, hacktivism, and cyber threats prevalent in the deep and dark web. The company also collaborates with major Italian universities, including Sapienza University of Rome, University of Tor Vergata, University of L'Aquila, and University of Cagliari, reinforcing its commitment to research and development in cybersecurity.

Industry Overview in Italy

The cybersecurity industry in Italy is witnessing rapid growth, propelled by increasing digitalization and the consequent rise in cyber threats. With businesses and government entities relying heavily on digital platforms, the demand for advanced security solutions has surged. Italian companies are now prioritizing cybersecurity as a fundamental component of their operational strategies, recognizing its critical role in safeguarding sensitive data.

According to industry reports, the Italian cybersecurity market is expected to reach new heights, fueled by investments in technologies and skilled personnel. This growth is further supported by government initiatives and regulatory requirements aimed at enhancing national security in the face of evolving cyber threats. As companies strive to maintain their competitive edge, the emphasis on cybersecurity is likely to intensify, leading to the emergence of new players in the market.

Moreover, the adoption of remote work and cloud-based solutions during the pandemic has catalyzed the need for robust cybersecurity measures. This trend is anticipated to continue as businesses recognize the vulnerabilities associated with the digital landscape. Consequently, firms like Abissi stand to benefit significantly from this burgeoning market, as organizations seek reliable partners to enhance their cybersecurity capabilities.

In summary, the cybersecurity landscape in Italy is evolving rapidly, presenting numerous opportunities for innovative firms. The growing awareness and necessity for cybersecurity measures ensure that companies like Abissi are well-positioned to thrive in this dynamic environment.

The Rationale Behind the Deal

The acquisition of a majority stake in Abissi by Metrika Tech Fund, facilitated by ABC Capital Partners, highlights a strategic move to support the company's growth trajectory in the burgeoning cybersecurity market. With Abissi targeting approximately €2 million in revenues for 2022 and a margin exceeding 30%, the investment aims to leverage this growth potential through strategic, operational, and commercial expansion.

By partnering with the founder, Luca Savoldi, who retains a 20% minority stake, Metrika Tech contests to position Abissi for an accelerated growth phase. The deal is expected to enhance Abissi's market presence through synergistic opportunities, including potential mergers and acquisitions with other players in the cybersecurity space.

Information About the Investor

Metrika Tech Fund is a private equity firm backed by reputable private investors specializing in Italy’s technology and finance sectors. The fund, focused on majority operations in the Italian small and mid-market, emphasizes investments that align with technological excellence. Recently surpassing its fundraising target of €30 million, Metrika Tech has successfully accumulated approximately €40 million to facilitate a limited number of high-impact investments, implementing an industrial approach to its portfolio companies.

The involvement of Metrika Tech in this transaction underscores its commitment to fostering innovation within the tech landscape in Italy, particularly in the area of cybersecurity. The firm’s operational expertise and strategic vision for growth provide a strong foundation for the future success of Abissi.

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The investment in Abissi by Metrika Tech, advised by ABC Capital Partners, appears to be a sound decision given the favorable dynamics of the cybersecurity industry in Italy. As digital threats continue to escalate, the demand for expert cybersecurity solutions is only expected to grow, ensuring a sustained revenue stream for Abissi. The company’s established reputation and its technical proficiency in dealing with critical sectors further fortify its competitive advantage.

Moreover, the capital injection is timely as it coincides with Abissi's strategic aim to expand its operational capacity and enhance its market footprint. Partnerships with other companies in the sector can also offer beneficial synergies, allowing for knowledge sharing and resource optimization that contribute to overall growth. The retention of Luca Savoldi as a minority stakeholder is a strategic move that further instills confidence in the company's leadership continuity during this vital transition phase.

However, it is essential to recognize potential challenges, including the rapid evolution of cyber threats and the need for ongoing innovation to remain competitive. The ability of Abissi to continuously adapt and improve its offerings will be critical in navigating the complexities of the cybersecurity landscape. As such, ongoing investment in talent and technology will be crucial to ensure the alignment of Abissi's offerings with market demands.

In conclusion, this investment not only represents a financial opportunity but also signals a commitment to enhancing Italy's cybersecurity landscape. Overall, the deal has the potential to yield significant benefits for all stakeholders involved, positioning Abissi for success in the years to come.

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