(Alliance News) - Websolute Spa announced Tuesday the acquisition of a 70 percent stake in Lunghezza d'Onda Srl.

Founded in 2010 by Antonio De Cicco and Andrea Zofrea, Lunghezza d'Onda is the owner of Showefy, a suite of software services where the core is a 3D configuration system in SAAS mode specializing in product configuration and service management for the furniture world, adopted by many sector leaders in the Italian market with an international vocation.

In 2023, in continuity with the results of 2022, Lunghezza D'Onda recorded very positive performance: revenues from sales and services "production" marginality of EUR916,000; a value of production of EUR935,000; an Ebitda of EUR585,000, with a margin of 63%; cash positive net financial debt of EUR785,000.

The deal involves the purchase from the selling shareholders of 70 percent of the share capital for a total consideration of EUR3.5 million, financed through an unsecured loan of EUR3 million backed by government guarantees, repayable in five years, the first of which in pre-amortization has already been paid today. The payment schedule for the investment is in several tranches: EUR2.9 million paid today; EUR310,000 to be paid by April 22, 2024; EUR112,500 by January 15, 2025: and EUR112,500 by January 15, 2026.

The agreement also provides for the option to purchase - call - the remaining 30 percent of the shares in favor of Websolute, to be exercised, under penalty of forfeiture, within five years from today and payment within 120 days of the exercise of the option. The valuation in the event of exercise of the option is parameterized to the average annual adjusted Ebitda performance of the last five approved financial statements prior to the exercise of the option, with recognition of a minimum guaranteed consideration of EUR500,000 already matched to 30% of the shares being sold.

To ensure management continuity, the founding partners - who will both hold 15 percent of the share capital following the transaction - will both be appointed as managing directors. Specifically, Lunghezza d'Onda's board of directors will consist of five members: Lamberto Mattioli will be chairman, Antonio De Cicco will be managing director and CEO, Andrea Zofrea will be managing director and director operations - HR, Maurizio Lanciaprima and Claudio Tonti will be directors.

Websolute's stock closed Tuesday up 3.7 percent at EUR0.99 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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