Hutton Collins is backing Italian healthcare IT systems company Dedalus Group. The investment will be made through a subordinated loan and a minority equity interest.
Hutton Collins, a leading provider of preferred capital, has signed an agreement to
invest €50 million in Italian healthcare IT systems company Dedalus Group. The
investment will be made through a subordinated loan and a minority equity interest.
In addition, co-investors with Hutton Collins have invested €15 million.
Dedalus Group, which has its head office in Florence, is currently the largest
healthcare IT business in Italy, with revenues of around €70 million and EBITDA of
€17 million. The company does business in 12 countries worldwide and has
strengthened its position in recent years, creating an Italian healthcare ICT hub,
bringing together over 30 companies in Italy and the rest of the world.
The deal with Hutton Collins will involve the purchase of stakes from outgoing
equity investors, as well as financial support for an international expansion plan.
Since 2006 Dedalus, under the leadership of businessman Giorgio Moretti, has
carved out a significant hub role in the healthcare software sector, by acquiring
some of the most interesting Italian healthcare ICT companies. After consolidating
its position in Italy, in 2009 Dedalus embarked upon a process of international
expansion, which led the group to begin operating in China, South Africa, Romania,
Spain and Latin America. It will shortly enter the Egyptian and Saudi Arabian
With 12 branches in Italy, 18 offices worldwide and a staff of over 900, 280 of them
abroad, Dedalus provides daily support to its clients in four business areas: clinical
area, GPs, health and interoperability platforms. Around 30-40% of its turnover is
expected to come from international markets by the end of 2016.
Today Dedalus is the Italian market leader in software systems for GPs, and is used
by over 21,000 doctors, 500 public-sector hospitals, 250 private healthcare facility
clients, 500 operating theatres, 280 laboratories, 120 pathology departments, 200
interoperability and cooperation platforms and, abroad, 60 hospitals in South Africa
and over 80 in China.
Giorgio Moretti, founder and CEO of Dedalus, commented:
“Dedalus products have a concrete impact on the evolution of a country’s
healthcare systems and the lives of its people by improving and simplifying
cooperation between local healthcare stakeholders (GPs, paediatricians, home care,
etc) and clinical and healthcare activities in hospital, optimising resources and
above all significantly improving the quality of care thanks to the constant, realtime
exchange of information regarding patients.
“I am sure that thanks to our new partners Hutton Collins we will have a greater
opportunity to promote our innovative solutions – developed in Italy (which has one
of the world’s finest healthcare systems) – in the new markets we have studied and
believe are ready to welcome what we have to offer in both cultural and
Mauro Moretti, Partner at Hutton Collins, commented:
“Hutton Collins bases its investment strategies on sharing growth processes with
businessmen and managers who have been able to demonstrate distinctive abilities
in their particular sector. This is why we are enthusiastic about the opportunity to
work alongside Giorgio Moretti and Mandarin Capital in the Dedalus development
project in an anti-cyclical sector such as healthcare software, which still offers
ample scope for progress.”
Enrico Ricotta, a Founding Partner of Mandarin Capital, added:
“We are more than happy to welcome Hutton Collins into our shareholding structure
because it will allow us to be as successful in other countries as we have been for
the last two years on the Chinese market.”
The following have contributed to the success of the Dedalus operation: DVR
Capital, who acted as M&A advisor, Clifford Chance, tax & structuring advisor,
Gianni, Origoni, Grippo, Cappelli & Partners and Eversheds Bianchini, legal advisors,
KPMG for business and financial due diligence, and PWC-TLS for tax due diligence.
Equus Group (PR adviser to Hutton Collins):
Piers Hooper / Sam Barton / James Culverhouse +44 20 7223 1100
Notes to Editors
Information on Hutton Collins
Hutton Collins (www.huttoncollins.com) provides mezzanine, preferred equity and
common equity capital to high quality businesses in the UK and continental Europe.
Established in 2002, the company manages over €1.5 billion of dedicated funds on
behalf of leading global financial institutions.
Hutton Collins invests alongside entrepreneurs, management teams, corporates and
other financial investors who require capital to fulfil their strategic objectives.
Typically these include supporting management teams who wish to acquire a
greater level of ownership in their company by way of a buyout, helping
shareholders monetise part of their investment while maximising their ongoing
level of ownership and providing capital to support growth strategies or to enhance
a company’s financial flexibility. The company works closely with its partners to
provide bespoke solutions for their financing requirements through a range of
junior debt, preferred equity and common equity structures.
Investments to date include Loch Fyne Restaurants, Pizza Express, Wagamama,
Coral Eurobet, Billington Cartmell, Healthcare at Home, Aquafil, Vizada and Caffè