Information on the Target

Founded in 1962 in Rome, the DEDEM Group has established itself as the leading company in Italy for the production and marketing of photo booth kiosks. The company has also become a primary operator in the installation and management of amusement halls and kiddie rides within shopping centers and other entertainment venues. Over the years, DEDEM has expanded its portfolio and market presence significantly, demonstrating a robust commitment to growth and innovation.

In recent years, DEDEM has diversified its development markets by investing in Information and Communication Technologies, as well as Additive Manufacturing (3D printing). Currently, the group operates through four distinct Business Units: Photo Kiosk Machines, Leisure and Amusement, 3D Printing, and Information and Communication Technologies, with operations in both Italy and Spain.

Industry Overview in Italy

The Italian entertainment and leisure industry has experienced significant growth, driven by technological advancements and an increasing demand for innovative entertainment solutions. The market is characterized by robust competition and the continuous introduction of new offerings that cater to changing consumer preferences.

Furthermore, the 3D printing sector in Italy has gained momentum, buoyed by a growing number of applications across various industries, including healthcare, automotive, and consumer products. This growth reflects a shift towards more sustainable manufacturing practices and custom product offerings, highlighting the strategic importance of integrating new technologies.

The amusement industry, including arcades and amusement parks, continues to be a popular attraction in Italian culture, drawing families and tourists alike. The rise of digital entertainment options has prompted traditional operators to innovate and enhance customer experiences through the installation of advanced gaming systems and attractions.

As the industry evolves, the integration of digital solutions and interactivity will play an increasing role in shaping consumer engagement and operational efficiency. Companies like DEDEM, with their focus on technology and innovation, are poised to capitalize on these trends.

The Rationale Behind the Deal

Riello Investimenti SGR has invested 5 million euros in bonds issued by DEDEM Group as part of its growth and development strategy. This funding will support DEDEM in expanding its operations and enhancing its competitive position within the market. By securing private debt financing, DEDEM is well-positioned to accelerate its strategic initiatives, particularly in diversifying its product offerings and enhancing technological capabilities.

This investment reflects the confidence that Riello Investimenti has in DEDEM's potential for future growth and its ability to leverage new market opportunities effectively.

Information About the Investor

Riello Investimenti SGR is a well-regarded Italian asset management firm specializing in private debt and equity investments. The firm focuses on supporting SMEs (small and medium-sized enterprises) with financing solutions tailored to drive growth and innovation. With a strong track record in identifying promising investment opportunities, Riello Investimenti plays a crucial role in enhancing the capital structure of its portfolio companies, thereby facilitating their long-term success.

Through its second private debt fund, Impresa Italia II, Riello Investimenti aims to provide financial resources that empower Italian businesses to grow and thrive in competitive markets, such as the entertainment and technology sectors.

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This investment by Riello Investimenti in DEDEM Group presents a compelling opportunity, given the company's strong market position and its proactive expansion strategies. By funding DEDEM's growth initiatives, the investor is likely to benefit from the expected upside as the company continues to diversify its operations and innovate within its industry.

Moreover, DEDEM's focus on technology-driven solutions aligns well with current market trends, suggesting a favorable outlook for future performance. As traditional sectors evolve, DEDEM is positioned to leverage its existing capabilities while exploring new avenues for revenue generation.

While inherent risks exist in any investment, particularly in growing sectors, the strategic rationale supporting this deal appears solid. DEDEM's established reputation, coupled with its emphasis on innovation, strengthens the case for investment.

In conclusion, this deal could likely yield positive returns for Riello Investimenti, especially as DEDEM capitalizes on both its existing strengths and new market opportunities over the coming years.

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