(AGENPARL) - Roma, 8 Giugno 2023 - (AGENPARL) – gio 08 giugno 2023 Relatech S.p.A
Digital Innovation
Strategic partnerships to face future challenges
Research Update
ADD | Fair Value: €5.26 (€5.26) | Current Price: €2.39 | Upside: +120.1%
€ Million
Va l ue of producti on
EBITDA
margin
Net Profi t
margin
Net Profi t a djus ted
margin
EPS a dj.
FY19A
23.1%
11.9%
14.1%
(0.7)
FY20A
24.2%
10.5%
13.2%
(0.0)
FY21A
20.6%
10.9%
10.0%
(1.7)
FY22A
18.8%
FY23E
114.9
19.2%
FY24E
126.8
20.5%
10.4%
10.4%
(11.8)
FY25E
140.0
21.7%
10.8%
10.8%
(26.7)
Source: Company data (2018–22), KT&Partners’ elaborations (2023–26). Note: EBITDA and EBIT data are reported
on an adjusted basis (without considering extraordinary items). Margins are calculated on the value of production.
1Q23 results and backlog at the end of May. On May 10, 2023, RLT-IT released its 1Q23
key financial results. The Group achieved €24mn of total revenues, also benefitting from
the contribution of companies acquired in 2022. The newly acquired companies have also
boosted its internationalization process and in 3M23 the share of consolidated revenues
from foreign customers stood at about €6.3mn, up 61% YoY. On the other hand, the share
of recurring revenues amounted to approximately €8.8mn, accounting for 37% of
consolidated revenues and, in line with the group’s strategy, increasing by 170% YoY
compared to 1Q22. The consolidated NFP as of March 31, 2023, shows a value of
approximately €15.5mn compared to a NFP as of December 31, 2022, of €9.5mn.
Furthermore, as of May 31, 2023, RLT-IT recorded consolidated orders backlog for the
current year at 29.5mn, with more than 40% generated by foreign customers. The results
confirm a solid and growing business model also driven by significant performances
registered by Security Operation Center and Network Operation Center business and new
opportunities from the PNRR incentives.
June 8, 2023 – 7.00 h
Equity Research Team
Federica FIORENZA
Mauro IACCINO
Strengthened business partnerships. During the first months of 2023, RLT-IT strengthened
its business partnerships through: i) the renewal of the partnership with Oracle NetSuite,
world market leader of ERP systems, for the implementation in cloud of Oracle NetSuite
ERP business application, supporting companies and organizations on their digitization
process (April 18, 2023); ii) the signing of a collaboration with IT Impresa (March 16, 2023),
a company specializing in the provision of IT services, to implement the suite of
cybersecurity services and solutions (an integral part of the Group’s offerings).
Estimates confirmed. We confirmed our latest estimates updated in April 23. We believe
that RLT-IT, following the growth path pursued over the last years, is well positioned to
seize future opportunities thanks to: i) an enriched offer, based on RePlatform, able to
satisfy customers’ needs throughout their entire innovation process; ii) synergies among
all the companies within the group to exploit cross- and up-selling opportunities on 1,000+
clients; iii) 800 talents and strengthened partnerships with the academic and scientific
world. We expect value of production to increase at a CAGR22–25 of 26%, reaching
€140mn in 2025. On the profitability side, we expect EBITDA margin will be positively
impacted by cost synergies going from 19.2% in FY23E to 21.7% in FY25E. Finally, we
anticipate a net cash position of €0.2mn in FY23E, reaching a net cash position of €26.7mn
in FY25E.
Valuation Confirmed. We confirm our valuation – based on both DCF and a market
multiples model – which returns an average equity value of €225.2mn or €5.26ps, implying
a potential upside of +120.1% on the current market price.
Note: shares outstanding also consider treasury shares
used for the acquisition of a further stake in EFA
Automazione and the numbers of treasury shares that will
be used for the payment of BTO’s earn-out
Relative Performance Chart since First Trading Day
Volume
Relatech S.p.A.
FTSE Italia Growth
Jul-19
178,08
Jan-20
Jul-20
Jan-21
Jul-21
Jan-22
Jul-22
Jan-23
KT&PARTNERS PREPARED THIS DOCUMENT PURSUANT TO AN
ENGAGEMENT LETTER ENTERED INTO WITH MIT SIM S.P.A.
ACTING AS SPECIALIST IN ACCORDANCE WITH ART. 35 OF
EURONEXT GROWTH MILAN MARKET RULES FOR COMPANIES.
Relatech S.p.A
Price: €2.39 | Fair Value: €5.26
Key Figures – Relatech S.p.A.
Sector
Current pri ce (€)
Fa i r Va l ue (€)
2018A
2019A
2020A
2021A
2022A
2023E
2024E
2025E
2026E
n.a .
n.a .
n.a .
n.a .
n.a .
n.a .
n.a .
n.a .
n.a .
10.92
10.50
n.a .
n.a .
37.75
36.84
n.a .
n.a .
43.35
42.24
n.a .
n.a .
43.35
42.83
n.a .
n.a .
43.35
42.83
n.a .
n.a .
43.35
42.83
n.a .
n.a .
43.35
42.83
n.a .
n.a .
(0.7)
(1.2)
(0.6)
(2.9)
104.9
114.9
(3.0)
116.0
126.8
(4.0)
128.1
140.0
(4.6)
138.3
151.2
(5.2)
(0.9)
(2.0)
(0.7)
(3.2)
(0.0)
(5.8)
(1.7)
(16.0)
(18.8)
(21.8)
(9.5)
(25.1)
(23.9)
(28.6)
(41.3)
(1.3)
(2.6)
(1.6)
(1.0)
(3.1)
(0.0)
(8.4)
(2.0)
(3.6)
(9.1)
(6.0)
(4.8)
(29.8)
(15.7)
(5.9)
(8.8)
(3.5)
(9.6)
(3.7)
(10.5)
(3.0)
(11.2)
Ma rket Ca p
n.a .
102.4
102.4
102.4
102.4
Mi nori ti es
Net fi na nci a l pos i ti on/(Ca s h)
Enterpri s e va l ue
n.a .
(0.7)
(0.0)
(1.7)
103.7
105.8
(9.5)
(23.9)
(41.3)
16.7%
16.2%
40.1%
59.7%
56.4%
45.1x
n.a .
-1.5%
23.1%
20.1%
-8.2%
-0.1x
53.4%
29.8%
22.7x
24.2%
16.9%
-0.4%
30.6%
20.1%
19.0x
-2.0%
20.6%
11.8%
-7.4%
-0.2x
17.6%
15.8%
16.2x
16.5x
-5.8%
18.8%
12.5%
28.7%
19.9%
18.6x
-15.3%
19.2%
12.8%
30.4%
21.7%
20.5%
14.0%
-16.4%
-0.4x
35.3%
22.3%
11.5%
21.7%
14.4%
-32.8%
-0.8x
39.5%
20.2%
14.3%
22.4%
14.9%
-46.3%
-1.2x
44.7%
18.5%
17.3%
19.5%
28.0%
82.0%
94.6%
90.8%
36.1%
43.5%
98.3%
78.5%
59.0%
14.2%
19.6%
-4.3%
-10.8%
52.9%
38.3%
17.5%
-3.5%
41.9%
117.1%
107.9%
90.2%
120.7%
-55.1%
73.0%
64.1%
67.1%
68.6%
476.9%
10.5%
10.4%
18.1%
20.4%
32.1%
10.5%
10.4%
16.7%
13.4%
13.6%
11.4%
11.7%
12.1%
Per Share Data
Number of s ha res (mn)
Trea s ury s ha res (mn)
Sha res ous ta ndi ng (mn)
EPS Adjus ted
Di vi dend per s ha re (ord)
Di vi dend pa y out ra ti o (%)
Free Fl oa t (%)
Di gi ta l Innova ti on
Profit and Loss (EUR million)
Sa l es revenues
Va l ue of Producti on
EBITDA
Ta xes
Ta x ra te
Net Income
Net Income a ttri buta bl e to the Group
Net Income a ttri buta bl e to the Group Adjus ted
Balance Sheet (EUR million)
Tota l fi xed a s s ets
Net Worki ng Ca pi ta l (NWC)
Provi s i ons
Tota l Net ca pi ta l empl oyed
Net fi na nci a l pos i ti on/(Ca s h)
Group Sha rehol der’s Equi ty
Mi nori ti es
Tota l Sha rehol der’s Equi ty
Cash Flow (EUR million)
Net opera ti ng ca s h fl ow
Cha nge i n NWC
Ca pi ta l expendi ture
Other ca s h i tems /Us es of funds
Free ca s h fl ow
Enterprise Value (EUR million)
Ratios (%)
EBITDA ma rgi n
EBIT ma rgi n
Gea ri ng – Debt/equi ty
Interes t cover on EBIT
NFP/EBITDA
EV/Sa l es
EV/EBITDA
Free ca s h fl ow yi el d
Growth Rates (%)
Sa l es
Va l ue of producti on
EBITDA
Net Income
Source: Company data, KT&Partners’ elaborations
Note: EBITDA and EBIT data are reported on an adjusted basis (without considering extraordinary items)
Shares outstanding also consider treasury shares used for the acquisition of a further stake in EFA Automazione and the numbers of treasury shares
that will be used for the payment of BTO’s earn-out
June 8, 2023 ? 2
Relatech S.p.A
Price: €2.39 | Fair Value: €5.26
Key Charts
Revenues (€mn)
Revenues and EBITDA Margin (€mn, %)
Source: Company data, KT&Partners’ elaborations
Note: M&A data refer to accrued revenue of companies acquired in the year.
Revenues by Industry (€mn, %)
Revenues by Geographical Area (€mn, %)
Source: Company data, KT&Partners’ elaborations
Source: Company data, KT&Partners’ elaborations
Note: Pro-forma data refer to accrued and not accrued revenue of companies acquired in the year.
Trade Working Capital (€mn, %)
NFP/(Cash) and NFP/EBITDA (€mn)
Source: Company data, KT&Partners’ elaborations
Source: Company data, KT&Partners’ elaborations
June 8, 2023 ? 3
Relatech S.p.A
Price: €2.39 | Fair Value: €5.26
Overview
Company description
Relatech (RLT-IT), a Digital Enabler Solution Know-how (DESK) Company, provides innovative
services and digital solutions, enabling the digital innovation of enterprises. The Group’s offer
is centered on the RePlatform, an internally developed digital cloud-based platform that
leverages on the next frontier technologies (i.e., Big Data, Artificial Intelligence (AI), Internet
of Things (IoT), Cloud, Augmented and Virtual Reality, Cybersecurity, and Blockchain).
RePlatform is based on five modules of software (ReYou, ReData, ReThing, ReSec, and
ReHub), making RLT-IT able to satisfy customers’ technological needs with a unique
comprehensive platform. RLT-IT provides “vertical solutions” (i.e., ReZone – an AI Customer
Engagement Solution for the retail industry – and ReFab4.0 – an AIoT predictive maintenance
solution for Industry 4.0), customized solutions and “innovation services” for a wide range of
end markets (i.e., Pharma and Healthcare, TelCo, Finance, Utilities, Distribution, and Retail).
RLT-IT was listed on Euronext Growth Milan (EGM) on June 28, 2019, with an IPO market
capitalization of €20mn and ca. €4.1mn of capital raised. IPO proceeds have been used to: i)
grasp M&As opportunities; ii) develop scalable solutions while investing in new technologies;
and iii) reinforce the management team and expand the commercial workforce to acquire
new clients and enter new end-markets.
Investment case
A scalable business model with an increasing incidence of recurring revenues. Over the
years, RLT-IT has enriched RePlatform with scalable solutions generating recurring
revenues. In FY22, recurring revenues rose by +151% YoY, accounting for 35% of reported
sales revenues.
An ongoing focus on R&D. RLT-IT is committed to continuously innovating its solutions
with the aim of enriching RePlatform with new applications. Over the 2016-22 period,
the company has invested ca. +€20mn in R&D and ca. 10% of revenue in 2022. RLT-IT
has also embraced an open innovation approach, carrying out R&D in collaboration with
universities, academic spin-offs, and research institutes (e.g., the NRC) to spot new
trends.
Consolidating partnerships with key IT vendors and system integrators. Over the years,
RLT-IT has established long-lasting relationships with key IT vendors and system
integrators (e.g., IBM, TechData, NTTData, Atos, etc.), which in some cases are also RLTIT’s clients. Business partnerships have allowed RLT-IT to i) add value to its offer by
integrating key enabling technologies and services provided by IT suppliers; and ii)
expand its market coverage by leveraging on IT vendors’ and system integrators’
networks.
Grasping M&As opportunities to boost growth. Since the IPO, RLT-IT has carried out 9
M&As (14 since its foundation) with the aim of: i) enriching its offer with new cuttingedge and complementary technologies/solutions; ii) expanding its customer base and
partners portfolio (e.g., Microsoft, Oracle, etc.); and ii) strengthening its positioning by
entering new markets.
Positioned in the digital enablers segment, which is expected to keep driving the Italian
digital market growth. RLT-IT is active in the digital innovation market, especially in the
Digital Enabler market, which has been the fastest-growing segment of the ICT sector for
several years. According to NetConsulting Cube, in 2022 the Italian digital market was
expected to be worth ca. €76.8bn and it is expected to grow at +4.4% CAGR2022–25,
reaching ca. €87.3bn in 2025.
June 8, 2023 ? 4
Relatech S.p.A
Price: €2.39 | Fair Value: €5.26
Recent developments
Introduction of the increased votes. In January 2023, the Extraordinary Shareholders’
Meeting approved the introduction of shares with increased voting rights. Following the
change in the Statute of the Company and the exercise of the redemption rights by some
shareholders, RLT-IT will re-purchase 394,340 shares at a price of €2.19 for a total amount
of €864k, leading treasury shares at 1.5mn.
Opening IULM AI LAB partnered by Relatech. In January 2023, IUM AI Lab chose RLT-IT
as partner for a laboratory of scientific research on AI, with the aim of developing
innovative solutions for private firms and PAs (i.e., Metaverse).
Industrial agreement with Ascot Industrial S.r.l. In October 2022, RLT-IT signed an
industrial agreement with Ascot Industrial aiming at developing a platform as a service
(PAAS) that will be extended to Ascot’s entire installation network (ca. 34k installations).
Growth Champions Award. According to a rating published by the German Institute of
Quality and Finance, over the 2018-2021 period, RLT-IT was among the 800 companies in
Italy with the highest growth rate.
Partnership with NIO Cocktails. In July 2022, RLT-IT started a collaboration with NIO
Cocktails to optimize management, accounting, logistics, and production processes. RLTIT’s solution was implemented with Oracle NetSuite team support.
ESG report 2021. In June 2022, RLT-IT published its second ESG report prepared in
accordance with the “GRI standards: Core option.”
Warrant exercise and stock grant attribution. As a result of the closing of the exercise
period for the “Warrants Relatech 2019-2022,” which occurred in May 2022, RLT-IT
issued 5,188,158 shares, raising €4.9mn. Furthermore, RLT has assigned ca. 460,034
shares newly issued to the top management, executing the “Stock Grant Plan 2021.”
Renewed partnership with HMS Networks. In May 2022, during the SPS ITALIA 2022
exhibition (for smart, digital, and sustainable industry), RLT-IT announced the renewal of
collaboration with the historical technology partner HMS Networks for the distribution
on the Italian territory of Anybus brand connectivity products, Ewon, Intesis, and Ixxat.
Launch of ReSoc, RLT-IT’s new cybersecurity service. In April 2022, seizing on the growing
needs of the market, RLT-IT developed the innovative ReSoc, the Security Operation
Center, leveraging on the high-level skills of the company Mediatech, the Group’s
aggregator pole for services and solutions in the Cybersecurity and Cloud segments.
Investing in Bigtech. In April 2022, RLT-IT acquired a 12.5% stake in Bigtech, a university
spin-off specializing in the development of innovative digital solutions and services based
on artificial intelligence and Internet of Things.
Collaboration with Movinlog. In March 2022, RLT-IT started collaboration with Movinlog
S.p.A. (a company operating in the logistics sector) for the digitalization of its corporate
assets and business processes in the Cloud.
Signed a strategic agreement with Rocket Sharing Company. In March 2022, RLT-IT
signed a strategic agreement with Rocket Sharing Company (innovative start-up active in
retail e-market and energy and gas supply). RLT-IT will be the technology partner for the
development and enhancement of Rocket’s business assets as part of a digital evolution
project.
In 2021, RLT-IT released its second sustainability report, highlighting an Economic Value
Generated by the company at €34mn, of which 89% was distributed to stakeholders. The
portion retained and invested in the company was about €3.9mn (the remaining 11%).
Regarding environmental commitment, RLT-IT highlighted in 2021 (also thanks to the
acquisition of Gruppo SIGLA) a growing research and development activity oriented to make
a substantial contribution to issues such as water monitoring in the marine environment and
energy consumption control in urban-smart cities. During 2021, energy consumption was
135,706 Kwh, registering a 3 % reduction compared to 2020. RLT-IT puts its human resources
June 8, 2023 ? 5
Relatech S.p.A
Price: €2.39 | Fair Value: €5.26
at the top of the value chain, a central asset for maintaining a competitive advantage in the
market. In 2021, training hours totaled 15,403, higher than the previous year mainly due to
the increasing number of employees. Finally, the focus on the organization, management, and
control model according to Legislative Decree 231/01 continued in 2021.
M&A Summary
BTO Research. In November 2022, Relatech closed its ninth deal since IPO,
acquiring an 80% stake in Exeo S.p.A., holding of BTO S.p.A. for a total consideration
of €13mn (4.4x EV/EBITDA). On January 18, 2023, RLT-IT announced the closing of
the reverse merger of Exeo into BTO. Following the merger, RLT-IT holds 80% of
BTO’s capital. With 300 professionals and an international presence (with branches
in Munich, Luxembour and Vienna), BTO is an Italian group that offers advisory
services – also leveraging on its research hub – helping enterprises to innovate their
business. Thanks to the acquisition of BTO, RLT-IT is expected to provide an end-toend offer that will be the result of advisory services combined with technology
solutions, covering each phase of the innovation process: feasibility, project and
change management, and implementation of new technologies. Furthermore,
leveraging on the strong ties of BTO with the academic community, the company
will strengthen both its open innovation approach and the recruitment of new
talents.
Venticento. In September 2022, RLT-IT acquired a further 9.71% stake in Venticento
– a firm specialized in cloud and cybersecurity – reaching the controlling stake (51%)
for €0.35mn or at ca. 12.4x P/E (based on FY21 data). Moreover, RLT-IT has the right
to acquire the remaining 49% stake through put-and-call options. Venticento is an
Italian SME founded in Milan, active in several industries, with international
branches in New York and Hong Kong. The company specializes in Cybersecurity
and Cloud solutions for enterprises, and it will allow RLT-IT to enhance ReHub
(Cloud) and ReSec (Cybersecurity) solutions.
IoT Catalyst (ex. Fair Wind Digital). RLT-IT acquired a 100% stake of IoT Catalyst –
a firm based in Rome specialized in IoT edge computing – for a total consideration
of €0.31mn or at 0.3x EV/EBITDA and 5.3x P/E (based on FY21 figure). The
acquisition of a 75% stake was carried out in September 2022 and the remaining
25% was acquired in October 2022. IoT Catalyst is an Italian start-up specializing in
IoT edge computing through proprietary platform and tailor-made solutions and
active in several sectors, such as industrial IoT, telecommunications, energy, and
smart city. Thanks to this acquisition, RLT-IT has enriched Replatform’s offer,
expanding the Company’s customer base toward PAs with a new office in Rome.
EFA Automazione SpA. In February 2022, RLT-IT announced the acquisition of
81.66% stake of EFA Automazione, a leading company in the industrial automation
market, for a total consideration of €7.35mn or at 5.7x EV/EBITDA (based on FY20).
RLT-IT has the option to acquire the remaining 18.34% stake under determined
conditions. On March 29, 2023, RLT-IT announced the acquisition of a further 8%
stake in EFA Automazione for €0.72mn. EFA Automazione is active in the industrial
IoT market, acting as an exclusive reseller of solutions that allow communication
and connectivity of machines and plants. Thanks to the acquisition of EFA, RLT-IT
has integrated its ReFab offer providing to the industrial automation industry endto-end solutions able to cover the entire Industry 4.0 supply chain from
infrastructure and connectivity set-up of machines/plants to collection and data
analysis solutions, while ensuring data protection. Furthermore, the acquisition has
allowed the Group to expand its customer base, also reaching important new
international clients.
DtoK Lab Srl. In December 2021, RLT-IT acquired – through Ithea Srl – a 51% stake
in DtoK Lab Srl – a university spin-off focused on the development of big-data
analysis solutions on cloud platforms and high-performance computing platforms
(i.e., sentiment analysis, trajectory discovery, and data journalism).
June 8, 2023 ? 6
Relatech S.p.A
Price: €2.39 | Fair Value: €5.26
Dialog Sistemi Srl. In May 2021, RLT acquired a 60% stake in Dialog Sistemi – an
Italian SME specialized in solutions for performance management and data
warehousing – for €0.67mn (the remaining 40% stake will be acquired by 2024).
Dialog Sistemi developed a property platform expected to enrich the ReData
module of RLT-IT, leading to a higher level of recurring revenue (in FY20 ca. 40% of
Dialog’s revenues were recurring). Scaling cross-selling activities on Gruppo Sigla’s
clients, RLT-IT is also expected to diversify its customer base by also entering new
end-markets, like steel, metallurgy, petrochemicals, and energy sectors.
Sigla Srl. In June 2021, RLT-IT acquired a 60% stake in Gruppo Sigla – an Italian tech
SME specialized in industrial automation, data analysis and cybersecurity – for
€2.3mn. Pursuing an open innovation approach, Gruppo Sigla develops its solutions
by leveraging on a strong collaboration between its internal R&D team and an
ecosystem of scientific partnerships. RLT-IT is expected to benefit from scientific
partnerships with technological districts and poles, particularly on the topics of
cybersecurity, Industry 4.0, Internet of Things and Cloud Architectures.
Xonne Srl. In June 2020, RLT-IT acquired a 53.6% stake in Xonne Srl, a company
specialized in virtual and augmented reality solutions and mobile technologies, for
€0.32mn. In November 2021, RLT-IT acquired the remaining 46.50% for €0.49mn
and in June 2022 announced the closing of the merger through incorporation
between Relatech Consulting Srl and Xonne Srl.
Mediatech. In June 2020, RLT-IT acquired a 60% stake in Mediatech Srl, an Italian
SME specialized in cloud and Cyber Security technologies, for €1.5mn or at a 6.2x
EV/EBITDA. In June 2021, RLT-IT acquired the remaining 40% for a total amount of
€1.7mn. With 20 years of experience in the construction of infrastructures and data
centers, Mediatech has a high specialization in the world of Cloud (private, hybrid,
public, hyperconvergence), allowing RLT-IT to enrich its ReHub and ReSec modules.
Based in Milan and Brescia, Mediatech has three data centers in Italy and a
customer base of over 300 clients.
Relatech’s M&A deals since IPO
Company Name
Medi a tech Srl
Xonne Srl
SIGLA Srl
Di a l og Si s temi Srl
Medi a tech Srl
Xonne Srl
DtoK La b Srl
E.F.A. Automa zi one SpA*
IoT Ca tal ys t**
Venticento Srl ***
BTO****
E.F.A. Automa zi one SpA*
Average
Median
Total
*Financials are related to FY20
** ex Fair Wind Digital
Announcement
Jun-2020
Jul -2020
Ma y-2021
Ma y-2021
Jun-2021
Nov-2021
Dec-2021
Dec-2021
Ma y-2022
Ma y-2022
Oct-2022
Feb-2022
Closing date Acquisition
Stake
Jun-2020
Jul -2020
Jun-2021
Ma y-2021
Jun-2021
Nov-2021
Dec-2021
Feb-2022
Oct-2022
Sep-2022
Nov-2022
Ma r-2023
*** KT&Part’s EBITDA FY21 estimates
**** Deal value includes earn-out. EBITDA 2021 reported on an adjusted basis
60.0%
53.5%
60.0%
60.0%
40.0%
46.5%
51.0%
81.7%
80.0%
Value
(€mn)
13.00
28.97
Cash Payment Revenues
(€mn)
in Kind
(€mn)
(€mn)
13.62
10.00
19.50
13.62
13.22
EBITDA
(€mn)
-0.02
-0.01
Income
(€mn)
NFP EV/Sales EV/EBITDA
(€mn)
-0.60
-0.10
-0.59
-0.17
-0.09
-0.59
-0.09
12.9x
14.2x
14.1x
13.9x
12.4x
23.0x
10.8x
12.4x
Source: Leanus, KT&Partners’ elaborations
Note: Revenues, EBITDA and NFP are related to the previous fiscal years of the announcement date. Furthermore, following the acquisition of a 9.7%
stake in Venticento Srl in May 2022, RLT-IT reached the controlling stake of 51%.
June 8, 2023 ? 7
Relatech S.p.A
Price: €2.39 | Fair Value: €5.26
Group Structure
Source: Company’presentation
June 8, 2023 ? 8
Relatech S.p.A
Price: €2.39 | Fair Value: €5.26
Appendix
Peer Comparison
We carried out an in-depth analysis of public companies that could be considered as peers of
RLT, taking into account its offering, business model, growth, and profitability profile. Looking
at the Italian market, we notice that selected companies – some of which are also RLT’s
competitors – do not provide a range of solutions for different technology needs like RLT but
each one of them is focused on one of RLT’s verticals.
We built a six-company sample, based on RLT’s offer (Innovation Services, ReYou, ReData,
ReHub, ReThing and ReSec), which includes:
Reply S.p.A. (REY-IT): listed on the Borsa Italiana stock exchange with a market
capitalization of €4.2bn, REY focuses on conception, design, and development of
solutions based on the new communication channels and digital media. It supports
the main European industrial groups in defining and developing new business
models utilizing big data, cloud computing, customer relationship management,
mobile, social media, and IoT paradigms. The firm also offers consultancy, system
integration and application management, and business process outsourcing. In
FY22, REY-IT reached ca. €1.9bn of sales.
CY4Gate S.p.A. (CY4-IT): listed on the Borsa Italiana stock exchange with a market
capitalization of €222mn, CY4-IT engages in the design, development, and
production of technologies, products, systems, and services to provide solutions for
cyber intelligence, cyber security, and cyber electronic warfare. It operates through
the Cyber Intelligence and Cyber Security business divisions. In FY22, CY4-IT reached
ca. €57mn of sales.
Neosperience (NSP-IT): listed on the Borsa Italiana stock exchange with a market
capitalization of €39mn, NSP provides digital customers with experience services
through its cloud-based platform named “Neosperience Cloud.” The company
offers AI proprietary models to enhance brand and product experience. In FY22,
NSP-IT reached €21mn of sales.
SECO S.p.A. (IOT-IT): listed on the Borsa Italiana stock exchange with a market
capitalization of €638mn, IOT-IT designs and manufactures proprietary
technological solutions for microcomputers and other integrated systems for
personal computer miniaturization. It operates through the following product and
service areas: Custom Edge Systems, Edge Platforms, and IoT Solutions. In FY22,
IOT-IT reached €201mn of sales.
Almawave S.p.A. (AIW-IT): listed on the Borsa Italiana stock exchange with a market
capitalization of €138mn, AIW-IT develops software technologies for artificial
intelligence, natural language analysis, and big-data management. The firm owns
and distributes patented technologies that offer solutions for text and speech
analytics, knowledge management, multi-channel contact management and virtual
agent, and customer experience management under the platform brands Iride and
Audioma. Its software products also feature automatic speech recognition under its
platform brands Audioma, FlyScribe, and Verbamatic. In FY22, AIW-IT reached
€48mn of sales.
WIIT S.p.A. (WIIT-IT): listed on the Borsa Italiana stock exchange with a market
capitalization of €560mn, WIIT-IT is a holding company, which engages in the
provision of hosted private and hybrid cloud services. It offers cloud computing,
critical applications, business continuity and disaster recovery, cybersecurity,
technology migrations, service desk, and digital transformation solutions. In FY22,
WIIT reached €117mn of sales.
June 8, 2023 ? 9
Relatech S.p.A
Price: €2.39 | Fair Value: €5.26
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Relatech S.p.A
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