Target Information

Kettydo+, a consultancy firm established in Milan in 2015, specializes in digital marketing, customer engagement, and loyalty programs. It was formed through the merger of Kettydo, Gecod, and the holding company Double Digit Group. The company focuses on creating seamless digital touchpoints across various platforms such as web, social media, mobile, e-commerce, and machine-to-machine communications. This approach aims to align with brands' marketing strategies while fostering continuous and valuable dialogue with users. In 2022, Kettydo+ reported revenues of €5.8 million, with an EBITDA exceeding €1 million.

As part of a broader strategic consolidation initiative, Kettydo+ will join other MarTech companies acquired by Xenon Private Equity Small Cap to form the holding company Advanced Intelligence Generation (A.I.GEN). This new entity is dedicated to enhancing enterprise value through the application of artificial intelligence, and it currently serves over 200 clients across various sectors including financial services, industrial, energy and utilities, pharmaceuticals and healthcare, media and telecommunications, retail and GDO, as well as food and FMCG. A.I.GEN has achieved an aggregated revenue of approximately €25 million.

Industry Overview

The digital marketing sector in Italy has been experiencing significant growth, driven by increasing online consumer engagement and the continuously evolving technological landscape. Businesses are increasingly recognizing the necessity of incorporating advanced digital marketing strategies to connect with their target audiences effectively. As a result, companies like Kettydo+ are positioning themselves as critical players in this field.

In recent years, investment in MarTech has surged as companies look to leverage technology to enhance customer interaction and optimize marketing processes. This trend is further supported by rising consumer expectations for personalized experiences and the integration of data analytics into marketing strategies. Consequently, Italian firms that offer innovative digital solutions are well poised to capitalize on this burgeoning market.

The landscape is further bolstered by a growing number of start-ups dedicated to developing technologies that facilitate online consumer engagement and loyalty. This has prompted a wave of mergers and acquisitions, as established companies seek to expand their capabilities and offerings in the competitive digital arena.

Xenon Private Equity Small Cap’s strategic movement in acquiring Kettydo+ aligns with the industry's trajectory towards AI-driven marketing solutions. The expanding utilization of artificial intelligence in digital marketing is anticipated to unlock new efficiencies and enhance customer experiences across various sectors.

Rationale Behind the Deal

The acquisition of Kettydo+ is part of a strategic initiative by Xenon Private Equity to consolidate and expand its portfolio in the MarTech space. By integrating Kettydo+ into A.I.GEN, Xenon seeks to enhance the technological prowess of its holdings, enabling client businesses to leverage cutting-edge digital marketing strategies powered by artificial intelligence. This strategic alignment is expected to create synergies among the different entities under A.I.GEN, ultimately driving growth and innovation.

Furthermore, the acquisition supports the growing demand for comprehensive solutions in digital marketing, where businesses are increasingly looking for partners who can facilitate meaningful engagement with their customers. The addition of Kettydo+ to the fold will bolster A.I.GEN's ability to provide customized and scalable marketing solutions to its diverse client base.

Information About the Investor

Xenon Private Equity is a prominent investment firm specializing in the management of small-cap equity funds, with a focus on driving value through strategic partnerships and operational improvements. The firm is dedicated to identifying and investing in high-potential companies across various sectors, particularly those that demonstrate innovative approaches and growth potential.

With a solid track record in the private equity space, Xenon Private Equity brings extensive industry knowledge and expertise to its portfolio companies. By positioning itself as a partner rather than just an investor, the firm aims to unlock strategic opportunities and foster the long-term growth of its investments.

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The acquisition of Kettydo+ by Xenon Private Equity Small Cap represents a strategic move that could yield significant benefits for both parties. From an investment perspective, Kettydo+ has established a strong market presence and demonstrated impressive financial performance, which bodes well for future growth under the aegis of A.I.GEN.

This deal could be seen as a sound investment as it capitalizes on the upward trajectory of digital marketing, particularly in leveraging AI technologies that are becoming increasingly vital in the industry. The integration with A.I.GEN will likely enhance operational efficiencies and expand service offerings, positioning the company to meet the evolving needs of the market.

Moreover, the growing emphasis on customer engagement and loyalty in Italy’s competitive digital landscape suggests that Kettydo+ is aligned with key industry trends. This makes the acquisition a timely opportunity for Xenon to tap into the burgeoning digital marketing sector.

In conclusion, if the integration is managed effectively, the deal has the potential to unlock considerable value for both Kettydo+ and Xenon Private Equity. The alignment of their strategic goals and the growing demand for innovative digital marketing solutions present a promising outlook for this investment.

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