The Shareholders’ Meeting of Dedagroup approves the 2020 Financial Statements: despite the impact of the pandemic, growth for the 15th consecutive year

Trento, July 14, 2021 – Dedagroup S.p.A., the aggregating hub of leading Italian firms in the Software and Solutions as a Service market, currently operating in over 50 countries with more than 4,000 customers, closed 2020 with growth for the 15th consecutive year, although the Italian information technology market declined by 2% compared to 2019 (Anitec-Assinform data).

HIGHLIGHTS
Despite the impacts of the health emergency, revenues increased on the previous year at the consolidated level in 2020 (+0.3%), rising to €253.5 million. The consolidated EBITDA performance was very significant, increasing by 29.5% to €28.2 million, driven by optimization of the organization, with the Corporate area committed to generating service efficiency for the benefit of Group companies. As a result, net operating income also rose by 931% to €4.5 million. Consolidated net income improved to €933 thousand.

The sound performance for the year, combined with the significant existing backlog, supports the view that the Group will succeed in managing further sharp growth in the current year, which has in fact begun with interesting results. In the first quarter of 2021, the Group recorded revenue growth of approximately 12% and an increase in margins of around 80%. These numbers are consistent with the goals for the current year that aim at a 10% increase in revenues and a 40% rise in margins.

The Group's expansion is also reflected in the considerable increase of its workforce, which with 217 hires in the course of the year reached a total of 1,934.

ANALYSIS BY MAIN BUSINESS AREAS
In 2020, Piteco (PITE:IM), an important player in the treasury sector and a key pillar of Dedagroup Business Solutions’ Finance Hub, held up well under the effects of the pandemic, thanks to the strength and diversification of its portfolio of products and solutions and its extensive geographical presence. This robust performance was driven by a business model based 64% on recurring fees, the solidity of which made it possible to finalize two M&A transactions during the year — the acquisition of the Everymake business unit, with its big data matching software, and the acquisition of 80% of RAD Informatica S.r.l. In 2021, the acquired entities will contribute to a significant increase in consolidated revenues and operating margins of the Piteco group and Dedagroup. 

Their value derives in part from the synergies and integrations of services that they achieve with the entire Finance Hub of Dedagroup Business Solutions, the Group company that meets the innovation needs of banks and financial institutions through its in-depth knowledge of processes and regulations in the finance market.
Dedagroup Stealth, which has supported the growth of the foremost fashion and luxury brands with its expertise and software platform for 30 years, consolidated its position in the fashion and luxury retail sector as a supplier of ICT software, solutions and services, continuing to acquire new customers and expanding its functional presence with certain customers. Although the pandemic had a deep impact on the fashion and luxury market, literally blocking sales and activity for many months, the Company took advantage of the opportunity to invest financial and human resources in developing new modules — Sustainability Solution and Order Management System — confirming its leadership in management software for the fashion market and its ability to respond effectively to the most complex needs in the sector, while anticipating and leading on models and best practices. In addition, in 2020 the Company further accelerated its sales of software in SaaS mode, a distribution model expected to grow steadily, while also expanding the user base by adding a solution to its range designed for the vast, dynamic market of independent designers and start-ups through the acquisition of Zedonk (F2iT).

The Managed Cloud Services Provider Deda Cloud was formed within Dedagroup in 2020 by leveraging its over 20 years of experience and vision in digital transformation. It was conceived as a company focused on one of the key technologies most transversal to enabling new models, and thus positioning as a clearly strategic asset for the entire Group. During the year, the Company enhanced its constantly growing team and range, seizing an integration opportunity in the equally strategic cybersecurity sector with the closing of the acquisition of 100% of IFInet S.r.l. in April 2021. Deda Cloud thus strengthened its ability to shape the evolution towards the cloud and As-a-Service models through its profound, cutting-edge cybersecurity expertise, increasingly crucial to companies’ digitalization processes, expanding its range of solutions according to a security-by-design approach that enhances all services and offers access to premium protection solutions.

The Group’s Digital Business hub, with Derga, a leader in the Italian SAP services market, and Dedagroup Wiz, which designs and develops Web and e-commerce platforms, saw the two companies work in increasingly close synergy, launching a shared process of innovation and development, which will drive the evolution and expansion of its digital offerings. 

In 2020, Dedagroup Public Services, which supports central and local Bodies and Public Service Agencies in digital transformation, proved its ability to support customers and the efficiency of its solutions, including in the most extreme conditions generated by the pandemic, in which the Public Administration was one of the most severely affected segments. This capacity was reflected in both the number of projects launched and developed, including in key sectors such as e-health, and in financial performance.

THE FUTURE: ORGANIC DEVELOPMENT, ACQUISITIONS AND INTERNATIONALIZATION
Considering that in 2020 — the first year of the current business plan — Dedagroup demonstrated its ability to execute its organic growth strategies, even under complex conditions, confirming the Group’s propensity not to slow its investments in software development and acquisitions, not even in the most difficult market phases, 2021 began with a process of reaping the rewards of these policies. In fact, the significant, double-digit increases in all main indicators confirm the soundness of the strategy, which continues to be pursued with conviction, including in leveraging market opportunities.

In this regard, Dedagroup is pleased to announce that it has just signed an agreement to acquire Pegaso 2000, a company with a long history in the IT banking sector, founded by Franco Cicogna, who will stay on as shareholder and CEO. The company, which operates in software solutions, is a market leader in credit finance, guarantee schemes and funds and money markets, based in the Umbria Region with a team of 70 people.

Marco Podini, Dedagroup’s Executive Chairman, commented: “The Group’s ability to reorganize itself and react swiftly to the situation is reflected in our 2020 numbers and underscores the soundness of our entrepreneurial journey, which has landed us a strong position in strategic, distinctive technological niches. These are market segments in which the development strategy based on acquiring companies that stand out in their fields allows us to expedite the growth process, achieving increasing coverage of the value chain. The acquisition of Pegaso 2000 marks the fifth transaction completed in the last 12 months: all extremely strategic to our offerings in the Fashion, Cloud, Cybersecurity and Finance sectors. This process reflects the Group's dynamic nature, while also confirming our conviction that at times of difficulty it is important to accelerate investments, both because crises engender opportunities and the market is the responsibility of entrepreneurs. Pegaso 2000 is a perfect match for the type of acquisitions we are seeking: top Italian software houses synergistic with the Group that enable its further development. In particular, this latter transaction falls within the framework of our growth project in the Banking & Finance sector, an area that is proving highly gratifying and in which we lead the market thanks to the top Italian software and digital business solutions offered on both shores of the Atlantic Ocean.” 

The quality of the range offered by Pegaso 2000 is underscored by its prestigious client portfolio, including Cassa Depositi e Prestiti, UniCredit, Banco BPM, Gruppo Mediobanca, UBI Banca, Gruppo Bancario Iccrea, Banca Sella, BPER Banca, Banca Carige, Crédit Agricole, Barclays, FCA Bank, Illimity and Santander Consumer Bank.

As a result of the acquisition, set to close by the end of July, Pegaso 2000’s solutions for managing and granting subsidized credit and structured finance will be synergistically combined with the specific expertise of the other Group companies, which together form a full-fledged Finance Hub. It is a hub of competencies aimed at occupying a top position in the financial credit market by leveraging: Dedagroup Business Solutions and its knowledge of banking and insurance processes; Piteco, a leader in treasury services for companies; RAD Informatica, a software house specialized in debt recovery processes, in and out of court; and VisiFI, which brings an in-depth knowledge of international banking processes and a strong focus on real-time technological solutions to its work in support of credit unions. This even broader range of competencies will enable Dedagroup to support its customers in the future of finance and the economy, implementing seamless processes of transformation and integration into ecosystems capable of facing the greatest challenges of change imposed by the open economy.