Rgi, an EMEA leading provider of software products and technology services to the insurance industry, is to be sold to US private equity firm Corsair Capital by investment house Ardian, the company founder Paolo Benini and the top management (see here the press release).
Corsair Capital has been said to be in a pole position for the deal since last Novembre (see here a previous post by BeBeez).
Ardian Expansion, led by Paolo Bergonzini, acquired a 72% stake in Rgi in May 2014, while the remaining stake was retained by the founder and the management (see here a previous post by BeBeez). Back then the sellers were private equity funds managed by 21 Investimenti and Quadrivio sgr, which in turn had bought their stakes after a tender offer and a delisting of the company from the Italian Stock Exchange in 2009.
RGI reached 58,7 million euros in revenues in 2016 (from 50.3 millions in 2015), 11.4 million euros in ebitda (from 11 millions) and a 38.6 million euros net financial debt (from 24.5 millions) (see here an analysis by Leanus, after free registration and login). Financial details of the deal have not been disclosed however RGI is said to have been valued using EV multiples close to the fintech sector ones or 11x ebitda for an EV of more than 125 million euros. Actually the company has been growing well in the last year reaching about 70 million euros in revenues.
Following Ardian’s profit sharing policy, the employees of RGI will receive a bonus for their valuable contribution to this success story. The same approach was proposed by Ardian when it exited from Novotema (see here a previous post by BeBeez), Rollon and Duplomatic (see here a previous post by BeBeez).
Ardian invested in RGI in 2014 in order to support the company in its international growth to become a global company. In 2016 RGI acquired a 100% stake in Kapia Solutions sas, a French company operating in the same sector with a focus in the life insurance segment (see here a previous post by BeBeez).